DianeW777
Expert Alumni

Investors & landlords

Accrued market discount from a US Treasury obligation is not deductible on the state return because the effective paid interest there was coming from a private party on the secondary market, not the US treasury.   If you buy the bond from the government, you can subtract the interest.   If you buy the bond from a 3rd party, the interest is not deductible. 

 

@ron6612 

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