1099-B Municipal bond process taxable?

[arnold-miller]

My 2014 Denver City CO bond matured in 2023 (sold) was like 4% per year rate

The 1099-B for this sale has boxes

1a. Bond Redemption

1c. Date Sold

1b. Date Acquired

1d. Proceeds

1e. Basis

2 Long-Term

6 Gross Process report to IRS

5 No

7 No

14 CO

FATCA No

Form 8949 D

How do I report this in turboTax to as Municipal bond interest to avoid Federal tax
--- Arnold Miller

[Bsch4477]

Capital gains on municipal bond investments are taxable as short- or long-term capital gains, depending on how long you have held the investment.

[arnold-miller]

That for that information.

I will check with City Bond issue company as why their Bond Redemption is capital gain 

when the City Bond interest rate (about 4% APR) was payable only on Redemption.

--- Arnold 

[Mike9241]

did you buy the bond at par? if so there should be no gain or loss.  if you bought at a discount the discounted amount you paid might have been less because going interest rates at that time was higher than 4%

say the going interest rate was 5% and you bought a 1 year bond you might have  paid 9905

at maturity you get 10400 of which 400 is the 4% interest the other 95 is gain due discount

$9905 at 5% is $495 which you got $400 interest $95 excess of par over cost