I've posted on this in early March but still am having trouble understanding how to amortize the ABP amount on a Municipal bond.
TTB, Pub 17 & Pub 550 seem to say the Acquisition premium of a tax exempt bond must be amortized - but how is this done?
The bond I'm referring to is a zero coupon, double tax exempt. Non-covered OID and Acquisition Premium amounts are shown.
Since the bond is a zero coupon municipal and it's interest is the accreted OID amount yearly, I assume the OID shown each year is not taxable.
Can't see how there would be anything to use as a reduction on schedule "B" through yearly amortization of the non-covered Acquisition Premium.
Hope someone out there can tell me what I seem to be missing.
Thanks for comments.
TTB, Pub 17 & Pub 550 seem to say the Acquisition premium of a tax exempt bond must be amortized - but how is this done?
The bond I'm referring to is a zero coupon, double tax exempt. Non-covered OID and Acquisition Premium amounts are shown.
Since the bond is a zero coupon municipal and it's interest is the accreted OID amount yearly, I assume the OID shown each year is not taxable.
Can't see how there would be anything to use as a reduction on schedule "B" through yearly amortization of the non-covered Acquisition Premium.
Hope someone out there can tell me what I seem to be missing.
Thanks for comments.