Whhere in ProSeries do you enter Coveredd Securities Transactions: Ordinary? Same 1099 has the usual Short Ter Covered and Long Term Covered but this "Ordinary" has me baffled.

Forum|Forum|7 months ago
November 8, 2025
1 reply
11 views

Whhere in ProSeries do you enter Coveredd Securities Transactions: Ordinary? Same 1099 has the usual Short Ter Covered and Long Term Covered but this "Ordinary" has me baffled. I have seen it treated differently from other brokers where you enter the numbers to make it a gain or loss and then enter the accrued market discount as interest incme. It looks like the same result.

ProSeries Professional

Best answer by Terry53029

If they are bonds purchased at a discount then any gain would be ordinary interest income up to face value. Anything over face value would be capital gain, or loss. Also be sure to see if your client claimed any interest (would have received a 1099 OID) in prior years. Here is an article from The Tax Advisor that explains it very well. https://www.thetaxadviser.com/issues/2007/oct/taxtreatmentofmarketdiscountbonds/

T

Terry53029

Intuit Community Champion

Is your client a trader that has elected "Mark to Market" if yes then ordinary would be reported on form 4797.

P

poolcleanerAuthor

Level 8

No, an investot. These are accrued market discount on bonds so there is isially a capital loss and ithenordinary income.The only logical result I can see is part ending up on Sch D and some as ordinary income.

T

Terry53029

Answer

Intuit Community Champion

If they are bonds purchased at a discount then any gain would be ordinary interest income up to face value. Anything over face value would be capital gain, or loss. Also be sure to see if your client claimed any interest (would have received a 1099 OID) in prior years. Here is an article from The Tax Advisor that explains it very well. https://www.thetaxadviser.com/issues/2007/oct/taxtreatmentofmarketdiscountbonds/

Sign up

Login with SSO

Let's get you signed in

Login with SSO

Scanning file for viruses.

This file cannot be downloaded