I purchased a tax-exempt zero coupon bond in 1993 for about $6,000. I held the bond until it was redeemed in 2024 for $50,000. I received a 1099B marked as following:
- Box 1c Date Sold is listed
- Box 1d Proceeds: $50,000
- Box 1e Cost Basis is blank
- Box 5, noncovered security is checked
- Box 6, Gross proceeds is checked
Since this is a tax-exempt bond (I have a letter from the IRS agreeing to the tax-exempt status), I should not have to pay taxes on the proceeds. How do I report this? The instructions for the Turbotax 1099B says I must enter that exactly as on the paper 1099B I received, so I cannot adjust the cost basis there. Do I adjust the cost basis on Turbotax form 8949? I little guidance is appreciated. Thanks!
