Hello. For certificates of deposit bought through a brokerage firm (in this case - Vanguard): When you buy a brokered certificate on the secondary market, sometimes you pay the seller their "accrued interest" at the time you purchase the CD. Vanguard does not subtract this interest payment made to them on my1099INT. I confirmed this with Vanguard. So I see two options in Turbotax:
One option is in the TT interview to modify the 1099INT input information with the "uncommon situations" checkboxes. One of those options for "reason for adjustment" is called "accured interest". The other option for "reason for adj" is to check box that I received the interest for someone else, a.k.a "I'm a nominee".
Does anyone know what is the correct way to go of those two? I read something that if you show you're "a nominee", you have to provide the IRS with the other party's information, which of course Vanguard is NEVER going to give you. So I'm assuming I choose the "accrued interest" reason and leave it at that? The end result to my refund is the same either way - it subtracts that amount of interest. I suppose a third way would be to change my cost basis that I paid for the CD on the 1099B, since it looks like that is listed as "basis not provided to the IRS" on my 1099B anyways.