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Sounds correct, and you're being taxed on Schedule B not Schedule D.  These entries represent Accrued Market Discount on bonds.  The gain is adjusted down on Form 8949 by the amount of the AMD, and TT will reflect this amount as ordinary income on Schedule B.  So in this example you should see an entry for $394 on Schedule B for this with some description ending with the phrase "Accrued Market Discount".