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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29558
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: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

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

Customer: replied 1 year 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 1 year 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

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.