About a US treasury strip...?

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About a US treasury strip...?

For tax reporting, is the amount in the "Original Issue Discount" on US Treasury Obligations...to be reported as an interest? or what?

2007-03-02 03:32:07 · 2 answers · asked by jonim2b 1 in Business & Finance ➔ Taxes ➔ United States

2 answers

The interest accrual is the amount to be reported as interest. The discount amortizes over the life of the strip, and the amount that it amortizes is the income. so if it was bought at 950, but has accrued to where it's worth 960, then 10 is your taxable interest.

2007-03-02 03:38:14 · answer #1 · answered by BosCFA 5 · 0⤊ 0⤋

Interest, Schedule B

2007-03-03 13:44:40 · answer #2 · answered by KillerKat 3 · 0⤊ 0⤋