Reporting Accrued Interest Paid

Discussion in 'Tax' started by W, Mar 31, 2010.

  1. W

    W Guest

    Form 1099-INT shows bond interest on line 1. Why does this form have no
    place to record the accrued interest that is paid by the taxpayer at the
    time the bond is purchased? Doesn't the accrued interest paid up front
    get to reduce your interest income received?

    To me it is perplexing why form 1099 doesn't give the broker a place to just
    report this accrued interest and net it up with interest received. It
    seems to me they are counting on the taxpayer not understanding that she
    paid accrued interest and therefore artificially boosting the taxable
    interest income.

    --
    W

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2007) - All rights reserved. >>
    << ------------------------------------------------------- >>
     
    W, Mar 31, 2010
    #1
    1. Advertisements

  2. On Mar 31, 6:56 am, "W" <> wrote:
    > Form 1099-INT shows bond interest on line 1.   Why does this form have no
    > place to record the accrued interest that is paid by the taxpayer at the
    > time the bond is purchased?    Doesn't the accrued interest paid up front
    > get to reduce your interest income received?
    >
    > To me it is perplexing why form 1099 doesn't give the broker a place to just
    > report this accrued interest and net it up with interest received.   It
    > seems to me they are counting on the taxpayer not understanding that she
    > paid accrued interest and therefore artificially boosting the taxable
    > interest income.
    >
    > --
    > W
    >

    That's because the broker isn't required to report this to the IRS.
    You have to look at the supplementary information the broker provides
    to determine the accrued interest paid.

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2007) - All rights reserved. >>
    << ------------------------------------------------------- >>
     
    Tom Healy CPA, Mar 31, 2010
    #2
    1. Advertisements

Want to reply to this thread or ask your own question?

It takes just 2 minutes to sign up (and it's free!). Just click the sign up button to choose a username and then you can ask your own questions on the forum.
Similar Threads
  1. MyVeryOwnSelf
    Replies:
    0
    Views:
    559
    MyVeryOwnSelf
    Mar 2, 2007
  2. Taxlover
    Replies:
    6
    Views:
    1,195
  3. Tom
    Replies:
    4
    Views:
    1,592
    Steve Pope
    Feb 20, 2009
  4. Tom
    Replies:
    1
    Views:
    460
  5. Confused
    Replies:
    3
    Views:
    1,210
Loading...

Share This Page