Accrued interest


M

Michael Cortese

I paid accrued interest on a bond in 2009. The company went bankrupt
and I was able to sell the bonds, but never got the interest payment.
Therefore, my total accrued interest paid in 2009 exceeds my total
interest received in 2009 (I had accrued and paid interest on other
bonds also). My question is can I deduct the accrued interest paid on
the bankrupt bond and where? I am assuming I cannot show a total
negative amount on my Schedule B.

I know this is probably up for interpretation, but I am guessing I can
deduct the accrued interest on the Schedule B up to the amount I had
interest paid. However, won't this look odd?
 
Ad

Advertisements

M

Michael Cortese

I paid accrued interest on a bond in 2009.  The company went bankrupt
and I was able to sell the bonds, but never got the interest payment.
Therefore, my total accrued interest paid in 2009 exceeds my total
interest received in 2009 (I had accrued and paid interest on other
bonds also).  My question is can I deduct the accrued interest paid on
the bankrupt bond and where?  I am assuming I cannot show a total
negative amount on my Schedule B.

I know this is probably up for interpretation, but I am guessing I can
deduct the accrued interest on the Schedule B up to the amount I had
interest paid. However, won't this look odd?
After looking around some more, it seems like if the accrued interest
was paid in a tax year other than the year the interest payment
occurs, the interest should be deducted from the basis of the bond
rather than deducted as accrued interest. Is that correct?
 

Ask a Question

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

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

Accrued Interest 1
Accrued Interest 2
accrued interest 1
Interest Income and Accrued Interest 1
USA Accrued Interest Expense 1
accrued bond interest? 1
Bond Accrued Interest 2
What is accrued interest? 11

Top