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Author: blacktreechaser Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35392  
Subject: how do I deal with this accrued interest in tax? Date: 2/28/2014 6:55 PM
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Since cost basis is being reported to IRS on a 1099-B for bonds I sold, and I don't agree with the cost basis, I'm wondering what to do. It's going to be an $86 difference in reportable income.

I bought bonds in 2012. I paid $4935.95 for the bonds and commissions, and $86.84 in accrued interest, for a total of $5,022.79.

I sold the bonds in 2013. The 1099-B from the broker says cost basis is only $4935.95.


In the 2012 tax statement I got from the broker, there is a section in the back called Accrued Interest Paid on Purchases. In it is the $86.84 I paid when I bought the bonds.

So, what do I do with this number for 2013 taxes? Can I just add it to the cost basis, or subtract it from what I report from the 1099-INT? Is it something I should have put on my 2012 taxes?

Did the broker screw up?
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