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Accrued interest purchased

Level 2

On the Form 1099-INT worksheet of Form 1041 the instructions say to enter the gross taxable interest received in Box 1 and the gross tax-exempt interest in Box 8.  I could not find any instructions as to where to enter accrued interest purchased on bonds for which interest was received in the tax year.

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2 Replies 2
Level 15

Same place, but as a negative number to reduce the taxable interest income. Unless ProSeries has a special field for it that will automatically reduce the interest, in which case enter as a positive. Check your output for the correct result.

Level 2

I was aware of this workaround.  I wondered why ProSeries, which does provide for accrued interest purchased in its Form 1040 module, does not do so in the Form 1041 module.

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