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Ask Ed Johnson Your Own Question
Ed Johnson
Ed Johnson, Tax Preparer
Category: Tax
Satisfied Customers: 10760
Experience:  GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
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Tresury bill reporting

Resolved Question:

Puch TB 4-4-06 77,299
Cash out TB 5-15-07 80,000
OID 1,380
How do I show on Tax ret
Is there a cap gain or does the diff go to interest. 80k show as gross proceeds on brokerage stmt
Submitted: 8 years ago.
Category: Tax
Expert:  Ed Johnson replied 8 years ago.

DearCustomer

These are reported as taxable interest.

If the Tbills were 100,000 or more, you can take maintenance fees as a deduction. You should have received a 1099-int.

http://www.irs.gov/pub/irs-pdf/p550.pdf

Ed Johnson and 5 other Tax Specialists are ready to help you
Customer: replied 8 years ago.
Reply to Ed Johnson's Post: How much do I report as taxable interest?
Do I report the OID separately on the schedule B. I think it is not taxable for state.

Thank you,
Expert:  Ed Johnson replied 8 years ago.

DearCustomer

I am sorry, but by OID do you mean Original Issue Discount?

AND PUch TB can have three different meanings including Japanese bonds, can you tell me your meaning of Puch TB?

 

Customer: replied 8 years ago.
Reply to Ed Johnson's Post: I mean Tresury Bill

Yes by OID I do mean Orig Issue Discount for which I got a 1099-OID.

Gross Proceeds of 80k were reported on my 1099-B proceeds from barter exchange. This is why I am confused.

Purch price 75,919
OID 1380
Expert:  Ed Johnson replied 8 years ago.

Dear weezie

Teh 1099-OID is added to interest and reported on schedule B.

 

Customer: replied 8 years ago.
Reply to Ed Johnson's Post: Once again. With the above numbers. How much would my interest be? Is it the difference in the purchase price and the 80k. Do I then add the OID to that or is the OID included already.

It would be fantastic if you could use the numbers I gave you and let me know how much to report as reg interest and how much to report as OID interest and if I need to report any cap gain.

What do I report on Sched D as well?
Expert:  Ed Johnson replied 8 years ago.

Dea weezie,

If you are wanting me to figure your total reporting of these two documents, I need to know wha the box by box entries are?

For example, box 1, box 2 of the 1099-OID, and the boxes of the 1099-B.

 

 

Customer: replied 8 years ago.
Sorry about that.

1099-B Gross proceeds Box 2 $80k

1099-OId-OID on Treas OBligations - Box6 $1,380


Treas Bill purch for $77,299 4-4-06

thank you!
Expert:  Ed Johnson replied 8 years ago.

DearCustomer

Generally

you have to report the disposition of the bond on Form 1040 Schedule D Part II. The sales price is the amount you received for the bond. Your cost basis in the bond is what you paid for it plus all the interest income you declared as OID. But it may be handeled differentl if you had to report interest every year.

I am ready to do the calculation for you, but I need one more piece of information. WAs this a T-bond where you were required to report interest every year?

 

Customer: replied 8 years ago.
The details say
US treas NT
6.625% Treas Bond

It was only held 4-4-06 thru 5-15-07 - 134 days

Accrual/Entry date 1/1/07, no interest was claimed in prior year.

Thanks again, sorry it's so confusing.
Customer: replied 8 years ago.
I never heard back.
Are you there?
Customer: replied 8 years ago.
I would like to pay and finalize this. You were just about to give me a final answer. Are you still there?
Expert:  Ed Johnson replied 8 years ago.

Dear weezie,

I appologize, but I thought you could see from the red notation that I opted out on the question.

I tried to find other experts including tax attornies to help you. But we are not set up to actually figure your interest and entries on the forms. This is because there is too much information missing about the bonds themselves in order for us to be able to do it for you.

We can answer some targeted and general questions, but we really can not figure your capital gain, your interest or your taxes.

For example, to see what we are up against, please see this link: http://www.unclefed.com/IRS-Forms/2001/HTML/p5500105.html

We would have to see the orignial documentatin for the bonds, for example.

You do not have to accept the question, you can request that it be closed if you like. I can also try one more time to see if someone else can do your interest calculations for you.

Best Regards

Ed