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Accrued interest purchased

ghaber
Level 3

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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3 Comments 3
sjrcpa
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.

ghaber
Level 3

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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Zazzy
Level 2

Did the work-around work for you in Pro Series 1041?  I just tried it and it didn't work for me.  Although it allowed me to enter a negative number into the 1099-INT worksheet, the program didn't include it in the total and presented the accrued interest as 0 on the summary page.  Thanks!

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