Market Discount Accretion Tax Reporting

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Tax Treatment of Market Discount Bonds

(4 days ago) The rules regarding dispositions of market discount bonds are outlined in Sec. 1276. Gain realized on the disposition of a market discount bond must be recognized as interest income to the extent of the accrued market discount, and any remaining gain will be capital if the bond is a capital asset in the hands of the holder.

https://www.thetaxadviser.com/issues/2007/oct/taxtreatmentofmarketdiscountbonds.html

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Publication 550 (2020), Investment Income - IRS tax forms

(7 days ago) Market discount. Market discount on a tax-exempt bond is not tax exempt. If you bought the bond after April 30, 1993, you can choose to accrue the market discount over the period you own the bond and include it in your income currently as taxable interest. See Market Discount Bonds, later. If …

https://www.irs.gov/publications/p550

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Publication 1212 (01/2021), Guide to - IRS tax forms

(8 days ago) Market discount. If your debt instrument has market discount that you choose to include in income currently and if the debt instrument is a covered security under Regulations section 1.6045‐1(a)(15), the market discount includible in income is reported in box 5 of Form 1099‐OID.

https://www.irs.gov/publications/p1212

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Taxes and Market Discount on Tax-Exempts

(1 days ago) For OID bonds, market discount is the excess, if any, of the revised issue price over the purchase price. As with other tax-exempt securities, market discount on OID bonds is accreted from the date the bond is purchased to the maturity date. Accreted market discount is taxed as ordinary income at …

https://www2.investinginbonds.com/learnmore.asp?catid=7&subcatid=72&id=56

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Tax treatment of accreted market discount - FMSbonds.com

(8 days ago) If the tax loss is used to offset capital gains, then the investor is only saving 15% ($15,000) in taxes at the time of the swap, but will owe anywhere up to 35% ($35,000) taxes on the accreted market discount at maturity, presumably 20-plus years after the swap. You state: "Best of all, the investor's new bonds regained all of their lost

https://www.fmsbonds.com/municipal-bond-forum/tax-treatment-of-accreted-market-discount/

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1099b box 1f shows a $5 "Accrued Market Discount". Tried

(6 days ago) If you bought a $1000 bond for $950, your market discount is $50. This discount must be included in your income, as interest, either over the period you own the bond, or when it is sold. In box 1f your broker is reporting the accrued amount of discount over the time you held the bond.

https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/1099b-box-1f-shows-a-5-accrued-market-discount-tried-entering-n-forms-amp-step-by-step-the-answer/00/469228

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Amortization and Accretion - Morningstar, Inc.

(2 days ago) The de minimis rule. The de minimis rule governs the treatment of small amounts of market discount. Under the de minimis rule, if a bond is purchased at a small market discount—an amount less than 0.25 percent of the face value of a bond times the number of complete years between the bond's acquisition date and its maturity date—the market discount is considered to be zero.

https://admainnew.morningstar.com/webhelp/glossary_definitions/fixed_income/amortization_accretion.htm

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Tax Treatment of Premium and Discount Bonds

(3 days ago) The investor is paying a premium of $350 in order to receive the above-market annual coupon of $50, which equates to a 1.74% yield on the bond. For tax purposes, firms will amortize the premium down to par over the life of the bond so that on maturity, the cost basis will adjust to $1,000 and not report a capital loss:

http://www.bairdfinancialadvisor.com/thepopovichfinancialgroup/mediahandler/media/16653/Tax%20Treatment%20of%20Prepium%20and%20Discount%20Bonds%20RU1.pdf

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AMORTIZATION AND ACCRETION (A/A) ELECTIONS

(5 days ago) Accretion is treated as OID . No Yes Permitted, with the consent of the Commissioner 3 Recognition of market discount income . Indicates if the Market Discount is included in income currently or at the time of sale . At sale, redemption or maturity Current inclusion Permitted, with the consent of the Commissioner 4 Amortize Taxable Bond Premium

https://clientlink.wedbush.com/taxreporting/PCS%20Wedbush_FixedIncome_AAElection%20Combined.pdf

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