If
you sell a bond between interest payment dates, part of the sales price
represents interest accrued to the date of sale. You must report that part of
the sales price as interest income for the year of sale. If you buy a bond
between interest payment dates, part of the purchase price represents interest
accrued before the date of purchase. When that interest is paid to you, treat
it as a return of your capital investment, rather than interest income.
Selig & Associates provides
the most aggressive tax representation allowed by law. Specializing in Trust
Fund Recovery Penalty (TFRP) representation, and all payroll, income and sales
tax controversies. We settle contested tax audits; negotiate excellent
payment plans, compromise tax debts, and resolve all civil and criminal tax
issues, including innocent spouse relief and separation of liability. For a
FREE CONSULTATION call us today (212) 974-3435
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