In 2018, financial advisor got us into several series E MTN zero coupon notes that have only tanked in value each year so far (10 yr notes). Each year there is a 1099-OID on our consolidated tax statement for these specific notes. The 1099-OIDs only has a value in box 1, and this value has increased 3 fold in the last 3 years. For 2024, this value alone is incurring several thousand dollars in taxes when entered as is, while the investment itself tanked further (down almost 35% since 2018). We will surely take a loss at maturity.
Something is not adding up for me - why are we paying thousands in taxes each year on this failing investment, while also expecting to lose on the investment at maturity? What will happen to all the taxes we pay over 10 years at maturity? Is box 1 supposed to be adjusted in any way?
Thank you for your assistance!
