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I was hoping to deal with the situation below when the bonds matured. But I probably have taken the wrong approach:

United Airlines bonds that I bot ten years ago make semi annual payments. The payments are interest, and "Principal Credited". As I understand it, the Principal Credited is a partial return of capital.
(If interested, the CUSIP is 909287AA2. My average annual return on these (interest and +/- change in market value of the bond) figures out to around 5 1/2%...nothing to write home about, but its income)

These bonds are not in a tax-advantaged account.

The 1099-B from Ameritrade reports these "Principal Credited" amounts in the SUMMARY OF PROCEEDS, GAINS & LOSSES, ADJUSTMENTS AND WITHHOLDING section. Under Long or Short Term, its reported as UNDETERMINED. Under Form 8949 type, its says "Form B or E, Basis Not Reported to the IRS"

Since I just let Turbotax download the 1099-B directly from Ameritrade, the amount shows up in my taxes on 8949 with Box B checked. And on Schedule D, Part 1, short term capital gain, with no cost basis.

I'm sure the way its being reported is all wrong. Any idea on how I should be editing this Principal Credited amount on my taxes? Not reporting it at all, and adjusting my cost basis when I sell the bonds, or when they mature?? Edit in a cost basis of the exact same amount, balancing out the gain to Zero?

Yes, I know, I've been procrastinating on this for too many years....I always leave it till the end, and then say I'll call IRS, and do an adjusted return later on. But life is short.
Could Ameritrade be considered to be at fault?? The bonds were originally bought in a Zions Direct account, and later that was all transferred over to Ameritrade.
Thanx much for your time for reading this.
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