Called Zero Bond

[Steelydan989]

I bought a zero bond that was recently called. The redemption amount was less than my cost basis and my bank statement indicates a loss. Do I report this loss on my tax return and, if so, how do I report it?

[PattiF]

The transaction will be reported as if you had a 1099-B.  You will need the cost basis, redemption amount, date acquired and date sold (called).

Search for 1099-B and select the Jump to link in the search results

1. Answer Yes to Did you sell stocks, mutual funds, bonds, or other investments in 2021?
   • If you see Your investment sales summary, select Add More Sales
2. On the OK, let's start with one investment type screen, select the category that applies to your situation and Continue
3. Answer No to Did you get a 1099-B or brokerage statement for these sales?
4. At Let's get your tax info, choose how you want to enter your 1099-B (import or type it in yourself)
5. Answer the questions about your 1099-B
   • Select Bond as the type and be sure to select the appropriate way you received the investment.

[Steelydan989]

Great, thank you very much!

[fanfare]

A Zero has its own  special rules.

Did you report the imputed interest that you did not get each year?

That changes your cost basis.

[Steelydan989]

Thank you. No I did not report imputed interest.