Based on the earlier comments from tax professionals, I do not that the the bond premium is taxable.
Actually I found several other articles and I think the better approach is to NOT enter the premium on 1099-OID, but instead subtract it from exempt interest on 1099-B. Taxslayer says to do this:
https://support.taxslayerpro.com/hc/en-us/articles/[phone number removed]-Form-1099-OID-Orig[product...
And an older post on TurboTax:
https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/should-i-recognize-a-...
It seems like the 1099-B and 1099-OID forms in TT are not handling this automatically, hence the manual process suggested in the posts.
