In article <m3skm6cbds.fsf[at]swing-shift.time-tripper.com> ,
Rich Carreiro <rlc-news[at]rlcarr.com> wrote:
- quote -


If a C/D is purchased through a stockbroker, you;re likely to
see a 1099B issued in addition to an -INT or -OID.
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ArtKamlet at a o l dot c o m Columbus OH K2PZH

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spope33[at]speedymail.org (Steve Pope) writes:

- quote -

If the CD has a term of more than one year and pays
all interest out at maturity, then it'll be OID.

--
Rich Carreiro rlc-news[at]rlcarr.com

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On this topic, is there some sort of rule that determines
which CD's result in OID and 1099-B's? It seems to me
almost none of them do, even the ones that "compound" rather
than pay interest out. Is there an accounting aspect that
causes some of them to do this?

It would be nice, from a consumer point of view, if they
all behaved the same, since when you invest in one you
are probably in the dark on this point.

Steve

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In article <235C124EAS86.VSLARRY[at]weizmann.ac.il> ,
Larry Israel <VSLARRY[at]weizmann.ac.il> wrote:
- quote -


The cost plus all OIDs equal the costbais is corect.

However the OIDs were probably reported to you as if you bought
this as an IPO. If you bought it later, the OIDs should have been
recalculated. I have asked a few times and have no found anyone
who recalculates.


Various can be used, and so can the original purchase date. Ignore
dates associated with accrued OID amounts.


Perhaps you are thinking of actual real dividends being reinvested
to purchase more of the stuff. But in the OID case here, you do
not buy more; rather you increase basis based on accrued amounts.
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

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A long term CD has had its imputed interest reported as OID for the last
few years. Now it has matured, and the amount is the purchase price plus
the accrued interest (which has already been taxed). The CD issuer has
issued a form 1099B for the total. That is the sales price. I assume that
the purchase price is the sum of the initial price plus all the taxable
income reported for it, which is equal to the sales price. But what should
the date be? The initial purchase price, or "various"?

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<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >