I bought treasury bond in Oct 2018 (say for $10,000). It had accrued interest of say ($100). So my net cost of buying this was $10,100. I did not receive any interest payment. Next payment is not until 2019. On my 1099-INT, there is no interest reported for 2018 but in footnote there is a charge for $100 (for accrued interest).
What do I do with that $100 charge on 2018 taxes?
Now in 2019, if I get $1200 interest, should i just subtract $100 from $1200 and pay taxes on $1100?
Thanks for your help.
