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I would appreciate help in figuring out how to report the OID and interest, for secondary-market TIPS (Treasury Inflation Protected Securities), which I bought in 2006.

The issue matures 1/15/2008. I paid a premium (101.156 per bond X 30 bonds).

The brokerage sent me a statement, with a 1099-OID. The OID section lists an amount, with a negative sign after the number: 241.40-

...and also a Total, which is a positive number: 241.40.

Should I enter the OID into the tax software as a negative or a positive number?

Does the OID take the premium I paid, for the bond, into account? If not, when should I record the capital loss (since it will mature at par, plus the inflation adjustment)?


I also paid accrued interest, on the bonds. The broker's 1099 reports that accrued interest as $215.48, but my transaction confirmation reports it as $226.69.

I have to call the broker, to get the correct amount.

My question is: how do I report the accrued interest?

Thank you,
Wendy




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