Turbo Tax Home and business 2024 is confusing on this point because: suppose you sell a US t-note you bought at discount and report the discount paid to you (line 1f on the 1099-B) using your broker supplied data.. Then on the next TT page you can check the box that "accrued interest ... is reported on a 1099-INT".
On the TT page after that it suggests that you should check your cost basis and maybe make an adjustment. Clearly if I look at my cost basis for the bond reported by the broker on the 1099 B, it will be lower than what I paid because I also had to pay the seller accrued interest.
So there seem to be two ways to get to the right answer: 1) deduct using a 1099- INT or 2) go back and increase the cost reported on my 1099B to reflect the accrued interest I paid the seller.
It is confusing that TT seems to offer two ways to do the same thing.
Advice, please.
Which should be used? The second contradicts what the broker says
