# Amortized Bond Premium



## horseshoe846 (Feb 8, 2017)

I know this really isn't expat related but I know you all are much more tax savvy than I and perhaps someone can help me out.

I am working through this years taxes. I have a bond (keeping it simple) which I bought at a premium several years back. The first year I owned the bond I wrote a letter to the IRS and told them I was going to amortize the premium. (I hold all bonds to maturity if they are not called). The first year I used the website costbasis.com to generate an amortization schedule for the bond and each year I use the premium amortization for the two periods 1/1 - 6/30 and 7/1 - 12/31 tally it up and put it on my schedule B line 1 as 'ABP Adjustment'.

Here is the root of my question. I downloaded the 1099 info from my brokerage directly into TurboTax. So (keeping this simple) let's say they reported that I made $2000 USD in interest on the bond. In fact they paid $2000 in the calendar year 2016. BUT the bond matured in Feb and the interest on the amortization schedule only attributes (say) $200 interest for 2016 (2 months). So what should I do ? The value for the premium amortization for the 2 month period is much smaller than that for a full 6 month period.

Should I 'adjust' the 1099 info from the broker to match the schedule.

Any thoughts appreciated.


----------



## horseshoe846 (Feb 8, 2017)

Answer to self - so I called Schwab this morning and the very helpful rep said - If you have been amortizing your bind premiums and you always have - you should continue to do so. She mentioned a form 8949 which can be used to adjust the annual interest reported on a 1099.


----------

