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Level 8
posted Feb 26, 2025 1:45:40 PM

1099-B from Treasury Direct has long term sales with Form 8949 Code D but AMD Amount in Box 1f is $0

On my 1099-B from Treasury Direct, I have a couple of long-term covered bonds (a 5 year TIPS and a 2 year T-Note) which matured in 2024, they have "D" for AMD in a column for "applicable check box on Form 8949", but the column for AMD Amount Box 1f has $0.00.  Is that intentional and it's really a long term cap gain; or should it be AMD and therefore on Schedule B as ordinary income and I should amend the Box 1f amounts to do this.  It's not much ($12 total) but wanted to understand it.  The TIPS cost basis is adjusted for OID but not quite matching the proceeds so there is this small amount of gain/income on maturity.

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1 Best answer
Expert Alumni
Mar 10, 2025 12:39:58 PM

 Let's address these individually.

 

  1. "D" for AMD on Form 8949: The "D" indicates that the security is a covered security with all necessary information reported to the IRS. If Box 1f shows $0.00, it suggests that no accrued market discount (AMD) was reported by TreasuryDirect. This could be intentional if the AMD was minimal or if TreasuryDirect did not calculate it.  
  2.  The TIPS cost basis adjustment for OID is standard, as OID reflects inflation adjustments to the principal. If there's a small difference between the adjusted cost basis and money made, it could result in a small gain or loss. This would usually be reported as a capital gain or loss.
  3. AMD is generally treated as ordinary income if it is reported. If you believe the $12 gain should be classified as AMD and reported as ordinary income, you could amend the Box 1f amounts and include it on Schedule B. However, this might not be necessary if the $0.00 in Box 1f is correct.

 

  

 

 

 

 

2 Replies
Expert Alumni
Mar 10, 2025 12:39:58 PM

 Let's address these individually.

 

  1. "D" for AMD on Form 8949: The "D" indicates that the security is a covered security with all necessary information reported to the IRS. If Box 1f shows $0.00, it suggests that no accrued market discount (AMD) was reported by TreasuryDirect. This could be intentional if the AMD was minimal or if TreasuryDirect did not calculate it.  
  2.  The TIPS cost basis adjustment for OID is standard, as OID reflects inflation adjustments to the principal. If there's a small difference between the adjusted cost basis and money made, it could result in a small gain or loss. This would usually be reported as a capital gain or loss.
  3. AMD is generally treated as ordinary income if it is reported. If you believe the $12 gain should be classified as AMD and reported as ordinary income, you could amend the Box 1f amounts and include it on Schedule B. However, this might not be necessary if the $0.00 in Box 1f is correct.

 

  

 

 

 

 

Level 8
Mar 10, 2025 5:17:54 PM

ah got it thanks, I was confusing the "D" with adjustment code for AMD but they mean Box D on the 8949.  I'll enter the 1099-B as provided without adjustment.