Yes it was part of a brokerage account and yes there is a
market to sell CD's on the secondary market. It's very
similar to bonds I just thought they would have a separate
category for it. Guess not.

Just to make sure does everyone agree that I should treat
the sale of a CD just like the sale of a bond?

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- quote -

I you can sell CDs before maturity through brokerage houses
such as Fidelity, so it must also be possible to buy them
after issue date and before maturity.

--
Vic Roberts
Replace xxx with vdr in e-mail address.

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Bob Sandler <bob_usenet[at]yahoo.com> writes:

- quote -

He didn't say he had the CD from a bank. You can also get
CDs from brokerage houses and those are negotiable
instruments that can be bought and sold (they're basically
FDIC-insured bonds).

To the original poster -- can you give us more information
about this CD? Was it from a bank? Did you get a 1099-B
reporting the sale? (well, I guess it's too early to know
about that last bit).

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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- quote -

It's not unusual to hold CDs as part of brokerage accounts,
and you can buy and sell them other than at the original
issue or maturity dates. You may get a 1099-B when you
"sell" the CD. Treat it as a bond.

--
Don EA in Upstate NY

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- quote -

I don't think you really SOLD the CD. A CD (Certificate of
Deposit) from a bank is not a security like a stock or bond
that you can sell to someone else. It's really just a bank
account. (The bank gives you a Certificate showing that you
made a Deposit in the account.) When you take the money out
at the end of the term, you aren't selling anything. You're
just withdrawing your own money from your bank account. You
do not pay tax on that, and you don't have to report it.
That's why it's not listed.

You only pay tax on the interest that the CD earned. By the
end of January the bank will send you a Form 1099-INT
showing the amount of interest they paid you on the deposit.
You just report the amount from the 1099 like any other
interest income that is reported on a 1099. The TurboTax
interview will lead you through entering that. That's all
you have to report.

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If someone is familiar with Turbo Tax can you help me with
this question.

I have a sale of a CD. This doesn't seem to be a listed
investment type.

The two that it seems likely are either a bond or 'other
investment'.

I didn't think CDs were synonymous with bonds but if you
choose 'other investment' it seems like it is more for some
kind of alternative property investment.

any help would be greatly appreciated.

Thanks

Spin

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