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Level 1
April 7, 2025
Question

HOW TO REPORT ACCRUED MARKET DISCOUNT ON BONDS

  • April 7, 2025
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    Level 5
    April 7, 2025

    On Screen 17.2 Dispositions, input the sale proceeds & cost as per the 1099-B, then scroll down to the Section titled Schedule D and input the market discount noted on the 1099-B in the box labeled "Accrued market discount adjustment." This will reduce the gain on Sch D and transfer that amount to Sch B as interest income.