- quote -

I have, but it was an unusual circumstance. The notes were
bought in a joint account using my SSN and later transferred
to a (revocable) trust account under the same SSN. No
taxable event occurred at the time of the transfer, but a
1099-B was issued at maturity.

--
Don EA in Upstate NY

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

- quote -

Your response does seem logical.

However, I've had a Treasury Direct account for years and
they've never sent a 1099B. Does anybody out there know
somebody who received a 1099B for Treasury securities held
to maturity in Treasury Direct?

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

- quote -

If he bought a note from Treasury Direct, he bought it at
original issue, not on the resale market. The refund amount
is usually the "loose change" necessary to adjust the note's
stated interest rate (notes are issued in one-eight percent
increments) to the actual auction interest rate. For
example, the latest Treasury two-year note has a stated rate
of 4-7/8% but was priced to yield 4.921% by a refund of
$8.66 per $10,000 of face value.

If held to maturity (not sold on the secondary market),
Treasury Direct does not issue a 1099-B. The refund (which
should in all cases be less that 1/8% of face value) is
treated as de minimis. See Pub 550 for the gruesome
details.

--
Don EA in Upstate NY

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

MyVeryOwnSelf <self[at]emailNot.nul> wrote:

- quote -

The refund means you had more on deposit in your TD account
than needed to purchase the note, so it was refunded in a
nontaxable transaction.

Since the note will be treated as not only an interest
paying instrument, but as a bond that can appreciate or
depreciate, there could be capital gain on sale. You would
expect a 1099B reporting sale or redemption.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

I purchased a Treasury Note using Treasury Direct.

The Treasury Direct statement shows a "Refund Payment" for
the purchase, about a half percent of the face value. It
also shows a "Security price" being the face value minus the
refund.

Does the Refund Payment have any impact on income tax?

In the past, I've purchased securities by Treasury Direct
and held them to maturity. I've reported the interest of
course, but no capital gain. The Treasury sends 1099-INT but
not 1099-B.

If somebody could demystify the Refund Payment, I'd
appreciate the help.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >