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You only get to deduct the accrued interest paid as you actually collect the interest. So if you paid $50 of accrued interest when you bought Bond 1, and $100 when you bought Bond 2, and you collected $130 on Bond 1 and nothing on Bond 2, you get to deduct the $50 paid (because 50<130) and carry the rest forward (because 100>0). Make a note for next year's file.
Same theory as the true up of real estate taxes at closing, when the payment period doesn't line up.
You only get to deduct the accrued interest paid as you actually collect the interest. So if you paid $50 of accrued interest when you bought Bond 1, and $100 when you bought Bond 2, and you collected $130 on Bond 1 and nothing on Bond 2, you get to deduct the $50 paid (because 50<130) and carry the rest forward (because 100>0). Make a note for next year's file.
Same theory as the true up of real estate taxes at closing, when the payment period doesn't line up.
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