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Cost Basis v. Adj Cost Basis for Bonds

msindc1
Level 4

Folks:

Client's 1099-B reports proceeds ($10,000) and cost ($10,000).  But at the end it also reports realized gain or loss reiterating the proceeds numbers but stating $10,890.50 for cost basis and $10,000 for Adjusted.

I'm confused--which number do I use?  What is this telling me?

M.

 

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3 Comments 3
sjrcpa
Level 15

Use Adjusted.

It's been adjusted for premium/discount amortization over the years.


Ex-AllStar

@sjrcpa Asking here since you could be lurking.  Thanks for your time.

 

In screen 11 (code 37) is an input for "Amortizable bond premium for tax-exempt bonds". In contrast, the instruction from using F1 says to "enter amounts only attributable to taxable interest only."  Do you see a way to reconcile these 2 things?

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I figured it out.  No response necessary.