Having trouble determining how to report "accrued interest paid" and "bond premium covered" Also "bond premium noncovered lots". Need and appreciate any7 help.
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Report the total interest received and adjust the amount down by following these directions.
See this help.
This was the answer I received from
TurboTaxKerriP , CPA when I asked a similar question. "If this is reporting Interest income on an instrument like a bond that had accrued interest at the time you purchased, then yes, you would reduce your interest income by the accrued interest at your purchase date."
Simply reducing interest income reported on the 1099-INT exposes you to audit risk since the amount reported does not tie to the 1099. Is there a way to report accrued interest separately?
Report the total interest received and adjust the amount down by following these directions.
See this help.
I have same concern. Accrued interest paid is in "not reported to IRS" section, that means IRS does not have the records. how do we prove it in the tax returns?
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