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A
arnold-miller
March 11, 2024
Question

1099-B Municipal bond process taxable?

  • March 11, 2024
  • 1 reply
  • 0 views

My 2014 Denver City CO bond matured in 2023 (sold) was like 4% per year rate

The 1099-B for this sale has boxes

1a. Bond Redemption

1c. Date Sold

1b. Date Acquired

1d. Proceeds

1e. Basis

2 Long-Term

6 Gross Process report to IRS

5 No

7 No

14 CO

FATCA No

Form 8949 D

How do I report this in turboTax to as Municipal bond interest to avoid Federal tax
--- Arnold Miller

 

    1 reply

    B
    Bsch4477
    Employee
    March 11, 2024

    Capital gains on municipal bond investments are taxable as short- or long-term capital gains, depending on how long you have held the investment.

    A
    arnold-millerAuthor
    March 11, 2024

    That for that information.

    I will check with City Bond issue company as why their Bond Redemption is capital gain 

    when the City Bond interest rate (about 4% APR) was payable only on Redemption.

    --- Arnold 

    M
    Mike9241
    March 12, 2024

    did you buy the bond at par? if so there should be no gain or loss.  if you bought at a discount the discounted amount you paid might have been less because going interest rates at that time was higher than 4%

     

    say the going interest rate was 5% and you bought a 1 year bond you might have  paid 9905

    at maturity you get 10400 of which 400 is the 4% interest the other 95 is gain due discount

     

    $9905 at 5% is $495 which you got $400 interest $95 excess of par over cost  

     

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