"Interest"ing. We also have a cd that we purchased from Schwab's secondary market mature this year. It has an accrued market discount that is reported as interest, not capital gain. Fidelity reports it as a gain. That was not what I was expecting, so I called them early last week. They tell you that they're not tax advisors, but I convinced them that it would be in their best interest to have their forms right. They bumped it up. The reply was that only bonds that were discounted at original offering would be treated as interest. Since I bought the cd on the secondary market, they treat it as a capital gain. You and I, Schwab, and TurboTax disagree.
