I purchased US Treasury Notes/Bonds in the Secondary Market. There were sold with an accrued market discount because current interest rates are above par. In my 1099B, the accrued market discount was classified as short and long term gains.
After automatically downloading the 1099B from my brokerage, it adjusted this short/long term capital gain and entered the gain as an Interest income on my Schedule B. Is this correct?
Shouldn't a long term Accrued Market Discount be taxed as a long term capital gain instead on interest income, as listed on 1099B?
