Here is how I'm handling Market discounts in the 2024 version. For better or worse I do everything in forms view.
I enter the Capital adj worksheet from the Capital asset sales as per RJS's instructions above. There is a special place in Part III of that worksheet to enter the Market Discount. It does not work, I don't know why. What I do is enter a manual adjustment in Part II of the worksheet, "adjustment code" is "D" and I enter the Accrued Mkt Discount as a negative number. This decreases the gain the gain (or increases the loss) by that amount. Then, on the bottom of the worksheet there is a Part IV and a line for "accred interest to Sch B" where I enter the amount as a positive number. This seems to work.
