Question
T-Bill accrued market discount tax treatment?
I received Form 1099B with some accrued market discount for a T-Bill purchase / sale. All other T-bill transactions are reported on the 1099-INT form as "interest from US government securities or Treasury obligations" but for some reason, this single T-bill purchase is included here on 1099-B.
The 1099B lists an accrued market discount of $119. Now, I'm unsure how to treat this amount? Is this taxable as interest income (not included in 1099-INT) or is this capital gain? Would appreciate any guidance on how to treat this.
