DianeW777
Expert Alumni

Investors & landlords

If you actually received the OID over time, then your cost and redemption amount will equal and there will be no gain or loss.  This is a normal transaction.  If you did not get the interest credited to your on the 1099-OID, and you paid tax on it each year, then you would add that to your cost basis.  This would be uncommon.

 

The redemption is treated like an investment sale for tax purposes.

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