How to enter Corporate Bond Discount that matured?

Parachute72 — Thu, 27 Feb 2025 00:12:40 GMT

I bought a $1000 corporate bond for $900. On maturity, the coupon interest is reported in the 1099-INT. The $100 discount is provided as a supplemental info from the broker as "Amortization and Accretion to Fixed Income". How do I report this interest income in Turbo Tax desktop version?

Re: How to enter Corporate Bond Discount that matured?

baldietax — Thu, 27 Feb 2025 00:44:53 GMT

Guessing from the verbiage this is Schwab. The supplemental details in the back is usually covered in the 1099s - check your 1099-B for this cusip you should have a line for the maturity with an AMD Amount in Box 1f for the $100, proceeds $1000 and cost $900. The AMD adjustment should zero out the gain/loss and flip the $100 to your Schedule B as ordinary income.

If you're seeing something different pls provide more info about what's showing on your 1099-B.

If you enter as sales summary the adjustment will trigger a need to send your 1099-B to the IRS, if you hit this suggest entering this item as "one by one" which will feed Form 8949, and remove the amounts from your sales summaries so the Schedule D is whole, that should remove the need to mail anything.

Not a CPA/Expert just my 2 cents.

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How to enter Corporate Bond Discount that matured?

Re: How to enter Corporate Bond Discount that matured?