It depends. If you paid any accrued interest when you purchased the Treasury bond in the secondary market you can adjust your interest and it gets added to your cost basis. Review your trade documents or your statement for details.
You should have a zero gain/loss when it is redeemed.
Report the interest and then enter the adjustment you may have paid at purchase (Form 1099-INT). If you are reporting Interest income on a bond that had accrued interest at the time you purchased, then you would reduce your interest income by the accrued interest at your purchase date. Enter the full amount of the interest, and then enter the Accrued Interest paid as an adjustment to reduce it.
Enter the 1099-B as indicated by baldietax, and TurboTax will carry the information to the appropriate sections (interest and sale/redemption) appropriately.
@Jaganlv
[Edited: 03/25/2025 | 5:48 AM PST]
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