For example, if a taxpayer receives $20 of taxable interest from a corporate bond and the amount of bond premium amortization allocable to the interest is $2, you may report $18 of interest income in box 1 of Form 1099-INT and $0 in box 11, or you may report $20 of interest income in box 1 and $2 in box 11. If you are required to report the amount of bond premium amortization allocable to an interest payment, you may report either (1) a net amount of interest that reflects the offset of the interest payment by the amount of bond premium amortization allocable to the interest payment, or (2) a gross amount for both the interest payment and the bond premium amortization allocable to the interest payment. You may not report the qualified stated interest on Form 1099-OID and the bond premium amortization allocable to the interest on Form 1099-INT. See Regulations section 1.6045-1(n)(5).įor a covered security acquired with OID and bond premium, if you choose to report qualified stated interest in box 2 of Form 1099-OID, you must report any bond premium amortization on that security in box 10 of Form 1099-OID. However, in the case of a taxable bond, if you have been notified by the taxpayer that the taxpayer does not elect to amortize bond premium, you must not report any amount of bond premium amortization. See Regulations section 1.6045-1(a)(15) to determine if a debt instrument is a covered security. Interest Income, later.įor a covered security acquired with bond premium, you must report the amount of bond premium amortization for the tax year. For information on credit allowance dates, see Interest to holders of tax credit bonds under Box 1. For example, interest on a coupon detached from a bond is paid when it is presented for payment.įor rules regarding when interest earned by a trust interest holder (TIH) in a widely held fixed investment trust (WHFIT) is reportable, see Regulations section 1.671-5.Ī credit allowed from tax credit bonds reportable on Form 1099-INT is treated as paid on the credit allowance date. Savings Bonds, interest coupons, and other demand obligations), interest is paid at the time the obligation is presented for payment. The interest must be made available so that it may be drawn on at any time and its receipt brought within the control and disposition of the person.įor payments made on obligations subject to transactional reporting (for example, U.S. Generally, interest is paid when it is credited or set apart for a person without any substantial limitation or restriction as to the time, manner, or condition of payment. Report exempt-interest dividends from a mutual fund or other regulated investment company (RIC) on Form 1099-DIV.įor a specified private activity bond with OID, report the tax-exempt OID in box 11 on Form 1099-OID, and the tax-exempt stated interest in boxes 8 and 9 on Form 1099-INT. Report interest that is tax-exempt OID in box 11 of Form 1099-OID, not on Form 1099-INT. Report interest that is taxable OID in box 1 or 8 of Form 1099-OID, Original Issue Discount, not on Form 1099-INT. Report only interest payments made in the course of your trade or business including federal, state, and local government agencies and activities deemed nonprofit, or for which you were a nominee/middleman. Interest Income, later) įor whom you withheld and paid any foreign tax on interest orįrom whom you withheld (and did not refund) any federal income tax under the backup withholding rules regardless of the amount of the payment. To whom you paid amounts reportable in boxes 1, 3, or 8 of at least $10 (or at least $600 of interest paid in the course of your trade or business described in the instructions for Box 1.
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