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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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I was entering in my capital gain stock transactiond and one

Customer Question

I was entering in my capital gain stock transactiond and one of the items had a "code d" adjustment. I looked and this amount reduced my gain on form 8949 and schedule D but increased my interest income on Schedule B instead. Is this correct? I don't want to pay any additional tax if need be.
Submitted: 9 months ago.
Category: Tax
Expert:  Lev replied 9 months ago.

You received form 1099B - correct?
In which box or column do you have adjustment "D" reported?

Customer: replied 9 months ago.
On form 8949 in column F there is the letter "D" and in column g there is a negative number for the adjustment.
Expert:  Lev replied 9 months ago.

That is correct - I just wonder if you correctly doing such adjustment as it must be reported on form 1099B.

If you received a Form 1099-B (or substitute statement) reporting the sale or retirement of a market discount bond, complete Worksheet for Accrued Market Discount Adjustment in Column (g)

See last page in instructions

https://www.irs.gov/pub/irs-pdf/i8949.pdf

This is the amount of your gain that is ordinary income.

Enter it as a negative amount (in parentheses) in Form 8949, column (g). Also, report it as interest income on your tax return.

So if your reporting is correct - that is correct tax treatment.

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