lefriedman
Sep 20, 2007, 06:13 PM
IRS Pub.550 states: Choosing To Amortize
You choose to amortize the premium on taxable bonds by reporting the amortization for the year on your income tax return for the first tax year for which you want the choice to apply.
I bought a Corp. bond in 2003. I decided to start amortizing it for the tax year 2007.
What adjusted acquisition price do I use?
Do I use the cost basis, the price at which I bought it since it is the first year I am amortizing OR do I use the adjusted acquisition price which I would have used if I started amortizing the year I bought it?
You choose to amortize the premium on taxable bonds by reporting the amortization for the year on your income tax return for the first tax year for which you want the choice to apply.
I bought a Corp. bond in 2003. I decided to start amortizing it for the tax year 2007.
What adjusted acquisition price do I use?
Do I use the cost basis, the price at which I bought it since it is the first year I am amortizing OR do I use the adjusted acquisition price which I would have used if I started amortizing the year I bought it?