RJM Posted March 25, 2009 Report Share Posted March 25, 2009 I have been ignoring the annual bond premium amortization on a tax-exempt bond, and it was redeemed in 2008 with an original cost $1600 more than basis. IRS does not permit taking a loss on Sch D for this premium on a tax-exempt bond. To cover my past mistakes (over 7 years), I want to just take the whole $1600 bond premium amortization in 2008, and then book the sale price equal to basis on Sch D. Since it is a small item on this return, I think this raises fewer flags than recording a loss on Sch D for a tax-exempt, which is verboten ! And I think it's too small an issue to amend any returns. Only state tax is affected. What does anyone think? Is this a reasonable approach? Or am I just lazy? Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.