The analysis makes sense. You can enter the extra interest income when you report the Form 1099-INT, just add it to the interest income reported. For the capital loss, you can enter an investment sale in TurboTax. Go to the Investment Income section and use the Stocks, Cryptocurrency, Mutual Funds, Bond, other option. Indicate that you sold Stocks, Bonds, Mutual funds.
Enter the sale as if it was reported on a Form 1099-B. Choose the Short-term, basis not reported to the IRS option for the sales section entry. Choose Bond for the type of investment. Enter $0 for the sales price and the loss amount as the cost.
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