On Dec 23, 4:01*pm, MyVeryOwnSelf <s...[at]emailNot.invalid> wrote:
- quote -

There is no such thing as "amortized interest" You amortize premium
or discount (Capital items, not income items like interest), although
it is often treated as what looks like interest. So, what did you
amortize? and was it taxable or a deduction to you (in the past, I
presume)? and in the light of this and Publication 550, what is your
question?

ed

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

- quote -

A different topic is "accrued" interest, which plays a role in an income
tax return after a bond is bought between interest dates. The same IRS
Publication 550 also has a section, "Accrued interest on bonds."

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

- quote -

There's a chapter on "Bond Premium Amortization" in IRS Publication 550.

IRS publications are available at:
http://www.irs.ustreas.gov/formspubs/index.html

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >

There must be a website somewhere that describes this, but I sure can't find
it.
I have bought and sold bonds that had amortized interest. How do I handle
this on my income tax?

I won't be paying tax this year regardless, but still want to get it right.

--
<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >