Technical topics regarding tax preparation.
13-Apr-2017 12:10pm
- Posts:
- 167
- Joined:
- 18-Feb-2016 4:21pm
- Location:
- Northern California
In the case of a tax exempt bond with an accrued market discount, is the accrued market discount reported on form 1099-B, box 1f already adjusted to remove the effect of the tax exempt OID? The 1099-B instructions do not give any guidance on how this figure is calculated.
13-Apr-2017 12:29pm
- Posts:
- 18752
- Joined:
- 21-Apr-2014 9:28am
- Location:
- Pennsylvania
Box 1f. Shows the amount of accrued market discount. For details on market discount, see Schedule D (Form 1040) instructions, Instructions for Form 8949, and Pub. 550. If box 5 is checked, box 1f may be blank.
13-Apr-2017 2:15pm
- Posts:
- 1004
- Joined:
- 4-Mar-2015 4:37pm
- Location:
- San Francisco
Each year any tax-exempt OID should have been reported as an information item on the consolidated 1099, and any market discount on munis listed out in the 1099-INT section (column 10). The OID would have been creating basis adjustments but should not be part of the tally of market discount listed on the 1099-B. I believe an exception would be if the muni had taxable OID, in which case it would be on 1099-OID. It might help to look at the entire 1099 to see what appears in the different sections.
Return to Taxation
Who is online
Users browsing this forum: golfinz, Google [Bot], Google Adsense [Bot], HowardS, ImposterTax712, JR1, MAPCPA60, MilesR, rbynaker, RuthC, sjrcpa, SlipperyPencil, SUSAN, taoseno, Webster, zl28 and 195 guests