For covered securities, Schwab reports cost basis to the IRS. For non-covered securities, Schwab will not report cost basis to the IRS. For stock plan participants with retail account transactions, Schwab will provide cost basis for covered and non-covered securities, as available, on a Form 1099 Composite statement.
Does Schwab report to IRS?
What is market discount on 1099-INT?
Market discount generally occurs when a covered security is acquired at less than face value of a bond and the stated redemption price of a bond at maturity is more than the basis in the bond at the time it is acquired.
How to report accrued discount on Sch B?
In box 1f your broker is reporting the accrued amount of discount over the time you held the bond. TT will show it as interest income on Sch B (look and see if it’s on that form), and then subtract the same amount from your gain on the sale, since it’s already been reported elsewhere. Hope this helps.
Where does accrued market discount go on federal tax return?
That makes sense and TT is doing that for my Federal return. However, when TT prepares my NJ state return (based on information in the Federal return), the accrued market discount is not being included in the “Taxable Interest Income”line and the accrued market discount is still being subtracted from my Schedule B gain on sale line.
How to find accrued market discount on 1099b?
1099b box 1f shows a $5 “Accrued Market Discount”. Tried entering n forms & step-by-step, the answer opposite from the amount of gain/loss shown on the broker’s 1099b.??
How is the disposition of a market discount bond treated?
The rules regarding dispositions of market discount bonds are outlined in Sec. 1276. Gain realized on the disposition of a market discount bond must be recognized as interest income to the extent of the accrued market discount, and any remaining gain will be capital if the bond is a capital asset in the hands of the holder.