Based on your comments you do have a sale of investment property. If it was held for more than one year (one year plus one day) then you will be considered long term, if held for a shorter period it would be considered short term. The maximum investment loss allowed in one tax year is $3,000 with a carry forward of the remainder of the loss. Before this occurs, any gains will be offset by the loss and only the excess will reduce your income up to the maximum allowed in one calendar year.
You should select 'Other' as the type of investment, then you should select that your purchased it. If you had any sales expense this would be added to your cost basis. Use the steps in the link to enter your sale and see the image provided for assistance.
Alternately, if you pay a premium to buy a bond, the premium is part of your basis in the bond. If the bond yields taxable interest, you can choose to amortize the premium. This generally means that each year, over the life of the bond, you use a part of the premium to reduce the amount of interest includible in your income. If you make this choice, you must reduce your basis in the bond by the amortization for the year. As indicated by our awesome Tax Champ @SteamTrain.
@mcmahtj2
[Edited: 02/18/2022 | 5:19a PST]
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
