Hahn1040 Posted August 13, 2018 Report Share Posted August 13, 2018 I would appreciate suggestions for resources / references for reporting bond interest: including OID instruments i have just a couple of clients who invest in such bonds. For the most part, I can go through the 1099 and plug in the info on the 1099 worksheets and it flows to where it needs to be on the tax return. Still, it seems there are inevitably one or two items that i am unclear on.... (market discount, bond premium, OID accrual...) One of these clients with a large portfolio of stocks and bonds (both taxable and tax free) died last June. I encouraged the son to get the broker to transfer the securities into an estate account. That did not happen.... the 1099s for 2017 were issued in the deceased name and social security number. ($38,000 dividends; $12,000 tax exempt interest; $5,000 OID) All of the securities were sold in February 2018 to distribute the cash to the heirs. i am working on separating the income for the 1040 and the 1041. of course, the stocks are easy because i have the statement that shows when the dividends were paid. But some of the bond interest is killing me- with accrued interest etc. the broker did provide a listing of the value of the securities as of the date of death. again, it is straight forward for the stocks, but for the bonds, I am unclear about how the interest accrued and/or paid impact the cost basis... I have a general understanding of how these things work but I would like to have a resource to consult to gain a more in depth understanding. A textbook or article would be great to use to work my way through these. Something with examples would be great so that I could follow along to see how it all fits together. Thanks so much for your help! I do appreciate any guidance!! Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted August 13, 2018 Report Share Posted August 13, 2018 I honestly don't think anyone can make a living properly reporting bond transactions. I also think almost no one even knows how they are to be reported. I usually lump all the various adjustments into one number and enter on 1099INT with code for 'other'. I also find that the totals in the detail pages of the 1099 are often different from the 1099INT. https://www.thetaxadviser.com/issues/2007/oct/taxtreatmentofmarketdiscountbonds.html Good luck! 1 Quote Link to comment Share on other sites More sharing options...
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