Hello to All Tax Experts:
I have a big difficulty on the school problem that reads (quote):
"Interest on First Bank CD $383.00
The $383.00 from First Bank was original issue discount. Dan and Frieda collected $15,000.00 on the First Bank CD that matured on September 30, 2010 The CD was purchased on October 1, 2008, for $14,000.00 and the yield to maturity was 3.5%."
That is all. This is not municipal bond. There is no 1099-OID Form provided and just the information as above. I have learned that CD interest should be reported every year even if not received, so what is the reportable interest for the year 2010 Fed tax 1040 on this 2 year CD as shown above? Please help with your expert's opinion what is the interest to be reported on 2010 / 1040 Form at this point??? - since I have studied and just can't get over it and I am so confused. This is part of the income tax project for school on Monday.
I trust this will receive your consideration, and I look forward to hearing from you as soon as possible.
Respectfully yours,
Rysio.
I have a big difficulty on the school problem that reads (quote):
"Interest on First Bank CD $383.00
The $383.00 from First Bank was original issue discount. Dan and Frieda collected $15,000.00 on the First Bank CD that matured on September 30, 2010 The CD was purchased on October 1, 2008, for $14,000.00 and the yield to maturity was 3.5%."
That is all. This is not municipal bond. There is no 1099-OID Form provided and just the information as above. I have learned that CD interest should be reported every year even if not received, so what is the reportable interest for the year 2010 Fed tax 1040 on this 2 year CD as shown above? Please help with your expert's opinion what is the interest to be reported on 2010 / 1040 Form at this point??? - since I have studied and just can't get over it and I am so confused. This is part of the income tax project for school on Monday.
I trust this will receive your consideration, and I look forward to hearing from you as soon as possible.
Respectfully yours,
Rysio.