TurboTax Business question re: Bond premium on Tax-Exempt bond

Forum|Forum|2 years ago
March 27, 2024
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This question relates to a trust return, Form 1041 in TT Business. What is the proper way to enter the number from 1099-INT, "Bond Premium on Tax-exempt bond?"

Extrapolating from a community answer about this topic, but dealing with Form 1040 rather than F-1041, I created a new 1099-INT. However I keep getting an error when it comes to the final review. In the forms view, line 13 is always in red. What is the proper procedure, and also, is the premium amount entered as a positive or negative number? Conceptually, it seems like it ought to be a negative number, unless TT is dealing with this in the background somehow.

TurboTax Business Windows

Best answer by PatriciaV

On the original Form 1099-INT, enter both Box 8 (tax-exempt interest) and Box 13 (bond premium). On the offset/nominee 1099-INT, enter a negative number only in Box 8. Since the interest is tax-exempt, you may not see a difference in the taxable income for the Trust.

Note that in Forms Mode, if you click the Errors icon above the forms list, a footer will appear below the open form with information about any forms errors (red boxes/fonts).

PatriciaVAnswer

Employee

Note that in Forms Mode, if you click the Errors icon above the forms list, a footer will appear below the open form with information about any forms errors (red boxes/fonts).

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