USA Premium call on a bond bought at par

Joined
May 13, 2014
Messages
1
Reaction score
0
If a bond (U.S. debt security) is purchased at par and subsequently called at a premium, how is that "gain" to be accounted for? A generic "gain on disposition" answer does not help as the tax consequences may vary if treated as accretion, negative amortization, or simply ordinary income, the same as would be true if the bond were sold at a premium when its amortized cost was equal to par value.
 

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

Top