If you received a 1099-INT, report that as interest income and then add it to the cost basis to report your sale of investment to determine your tax gain or loss. Be sure to select Bond for the type of investment.
To determine the interest (or income) on a Treasury bill (T-bill) sold before maturity, calculate the difference between the sale price and your original purchase price, often adjusting for the time held. Interest is technically the pro-rated amount of the discount (difference between original price and maturity value) based on the days you held the security.
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