TT BUSINESS 1099-OID for tax exempt bonds Accrued Interest Paid for bonds, and Acquisition Premium Covered transaction

[no-name1]

WHERE do I enter in TurboTax BUSINESS :

Tax Exempt 1099-OID

Accrued Interest 

Acquisition Premium (covered transactions)

[AliciaP1]

Can you clarify if you are using TuboTax Business or TurboTax Home & Business?

@no-name1 

[no-name1]

TurboTax Business - working on 1041s for trusts

[ilg10402021]

Same here.  You have to do it manually.  Ridiculous.

[no-name1]

Agree.  TT could at least say  HOW to do it manually - SUBTRACT each of those from 1099-INT tax exempt  on broker statement?  And enter that in TT 1099-INT (tax exempt)?

There isn't even any way to include an attachment with the manual calculation. Guess I just keep it in my tax file.

[gdowstock]

Depending on which thread you read there are different answers on how to enter Tax Exempt OID, Acquisition Premium and Bond Premium - Tax Exempt.

1.)  I realize there is no 1099-OID form in TT Business.

2.)  Is there any plan to for the 2022 tax year?

3.)  Here is my example, all items are noncovered lots, I would like to know what box each number goes into the 1099-INT.

Tax Exempt OID - 47.35

Acquisition Premium - 47.35

4.)  It would be greatly helpful if TT would publish clear instructions on how to handle the 1099-OID.  There are too many conflicting answers on this discussion board.

[ilg10402021]

I have TT Deluxe as well as TT Business.  TT Deluxe has 1099-OID.   

I have same situation as you do.  Tax-Exempt OID and Acquisition Premium amounts are the same.  If I create 1099-OID in TT Deluxe, there is no impact on the 1040 because, apparently, the AP reduces the T-E OID to zero.  If I enter only the T-E OID--in my case, $63--the amount of Tax-Exempt interest on the 1040 is increased by $63.

As you stated, there is way too much information here about 1099-OID.  There needs to be a "template" for this."

When I used another tax program that has 1099-OID "template," that tax program SUBTRACTED the amount of Tax-Exempt OID from TAXABLE interest on Form 1041.  There is no way that's right.  Tax-Exempt OID does not have anything to do with Taxable interest, IMO.

TT needs to fix this issue.  The "workarounds" found here are not correct, IMHO.  I agree with gdowstock.

[BrittanyS]

A 1099-OID enhancement has been requested and is being worked on to add to the TurboTax Business software.  The enhancement will allow the Business software to enter the 1099-OID as you can for the TurboTax personal software.

@no-name1 

[gdowstock]

That's great news for all TT Business users.

Is there a target release date?

[gdowstock]

Is there a release date for the TT Business 1099-OID?  It's 13 days to filing deadline. 

[ilg10402021]

Looks like no chance for this year.

Here is some helpful information from a tax professional regarding OID for tax-exempt bonds:

OID is treated as interest.  Acq. Premium reduces your OID.  Tax-Exempt OID (Box 11)  is offset by Acq Premium (Box 6); they are both adjustments to tax exempt income and are not taxable.  So, for example, if your Acq. Premium (Box 6) is $100 and your OID is $200, you would add $100 to your interest income.

Bond premium reduces tax exempt income.  TTax 1099-INT template takes care of this automatically.  Same goes for bond premium for taxable bonds.

[cobrapromotions]

Most of the other threads about this issue are marked as SOLVED even though this has been a problem for more than 5 years at least from what I've seen.  The "solutions" posted don't work but hey, let's mark the problem as solved and bury our heads in the sand for another year.

Knock Knock Intuit, anybody home????

Can't wait until I finally close my business this year so I can finally stop spending money on this piece of garbage as well as quickbooks.  Was hoping that since I already had to buy the business edition for the

business, I could also use it for a family trust.  Nope, too much work to have to enter every.single.bond, then enter them all again for accrued interest and/or OID and whatever else Intuit in their wonderful wisdom has decided we really just don't need.

[ilg10402021]

TaxAct has template for 1099-OID.  Pay when you file.

TurboTax rarely if ever fixes anything that is "broken.". They reuse same code each year.