How do I add aditional information to sales total for 1099B

[vossko]

Hi,

I've had very similar 1099-B's for many years and have used turbo tax for many years. This year TT seems to have lost the necessary options for entering my 1099B totals. Specifically, I have a "market discount" (box 1f) column and a "wash sale disallowed" (box 1g) column in my 1099B. 

In previous years, there were options for entering these in in TT when reporting totals from a 1099B . Now the best I can do is click "I need to adjust my total cost basis" and enter a single number. I can mark it "market discount" and "non deductible wash sale", but those are 2 separate boxes on my 1099B and there is no longer a way to put those into turbo tax, as far as I can tell. The market discount is on government bonds held to maturity, and this is supposed to go into my income, not capital gains/loses. If I enter this as a positive number, it seems like the taxed improperly on this, as it is already included in my total proceeds - cost basis. And they my total capital loss TT calculates is clearly wrong.  If I enter as a negative number, my total loss matches what my 1099B says (and it is the correct number), but then I clearly haven't reported the income correctly.

This must be a common issue. Any idea how to handle it? It seemed to work fine in previous years. But I can't seem to figure it out this time. 

[DavidD66]

You need to break out the transaction(s) with the Accrued Market Discount and report the transaction(s) separately in order for the OID discount to flow to Schedule B as interest income.  Or you can manually enter the interest income.   

[vossko]

Thank you David,

After some considerable spreadsheet gymnastics, I figure out that the market discount was already included in my 1099-int under line 3. So I feel safe to adjust use the "I need to adjust the cost basis" and enter a negative adjustment with code D. This makes my gain/losses work report correctly, and I am not underreporting income as it is already reported. 

I don't know if that is the right way to do it, but it does seem to work and faithfully reports my investment income. It also ensures I am not paying state tax on US treasury interest.