Rich Carreiro <rlcarr[at]animato.arlington.ma.us> wrote:
- quote -

Or which parts are applicable. All I know is

* the date the CD was purchased
* the date it matures
* the face value
* the issue value

It looks like I'm supposed to calculate Yield to Maturity,
but that depends on knowing what the accrual periods are.
AFAIK, there aren't any because there's no interest to
accrue. Do I just pick a value (they seem to like 6 months
in the examples)?

I'm then supposed to use YtM to adjust the accumulated value
in each period.

But then there's a discussion of daily OID that seems
applicable -- I'm supposed to use that because a tax year
can continue multiple accrual periods.

It looks like example 15 and 16 are the closest to my
situation (except that those include interest payments).

Any of this resonating with someone who's done it before?

Eric

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Eric Friedman <friedman-nospam[at]lmi.net> writes:

- quote -

So you've looked at Pub 1212 but haven't been
able to understand the math they lay out?

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

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My child owns a CD in a foreign bank account. The CD was
purchased at a discount to face value and will be cashed at
face value when mature. I believe that this means I have to
report the OID as income, just like a zero coupon bond, but
I can't figure out how to calculate OID from the IRS'
publications. A foreign bank is not going to issue me a
1099-OID. Anyone able to help with this calculation?

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