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posted Mar 22, 2025 10:52:59 PM

Does TT handle properly Accrued Market discount in form 8949?

I see many posts on this topic as many have bought/sold US TSY. The accrued market discount is meant to adjust the gain/loss to $0? currently 8494 reports the proceeds minus cost basis as total gain regardless of the accrued market discount. Should this be the case? 

in form 1099-B the gain/loss is reflected as $0 (as it adjust for AMD) whereas in TT it is not. is this OK?

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1 Replies
Level 8
Mar 23, 2025 5:18:00 AM

No that's not ok.  Yes the Box 1f adjustment should zero out your Gain/Loss and flip that amount to your Schedule B to be reported as ordinary income.

 

Posted response elsewhere to ask if you are using "one by one" for these items, or sales summary adjustments; suggest using one by one for these (and the rest of your 1099-B can go in as a sales summary with no adjustments then you won't need to mail anything to IRS)