accrued interest paid on bonds

Forum|Forum|2 years ago
February 23, 2024
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Turbotax allows you to make an adjustment to your interest income to account for accrued interest paid on bond purchases. HOWEVER, it applies that adjustment to all bond purchases, pro-rata among different classes of bonds (corporates, treasuries, muni's). This is despite the fact that the accrued interest paid wasn't necessarily evenly spread among all bond classes. Turbotax really needs to add a feature which would allow that accrued interest paid upon purchases to be allocated to the specific bond classes that the accrued interest was paid. How about it?

Mike9241

a flaw in TurboTax that has existed for decades.

the only workaround is to create a 1099-INT for the payor for each type.

thus the type of interest and accrued interest adjustment will be the only numbers on that form

also, accrued interest on bonds is only deductible to the extent interest was received on that bond. The balance carries river to next year to offset the interest received