@pk
But how about Publication 550? It makes a difference between short term CDs (1 year or less) and long term CDs (more than 1 year).
Let me copy and paste again what it says:
Page 7 - Certificates of deposit and other deferred interest accounts.
If you buy a certificate of deposit or open a deferred interest account, interest may be paid at fixed intervals of 1 year or less during the term of the account. You generally must include this interest in your income when you actually receive it or are entitled to receive it without paying a substantial penalty. The same is true for accounts that mature in 1 year or less and pay interest in a single payment at maturity. If interest is deferred for more than 1 year, see Original Issue Discount (OID), later.
Pg 20 - Certificates of Deposit (CDs)
A CD is a debt instrument.
If you buy a CD with a maturity of more than 1 year, you must include in income each year a part of the total interest due and report it in the same manner as other OID.
Applying those rules, I should only apportion the 18-month CD because the other ones are short term (1 year).
