From Pub 550 my understanding is that when I buy a bond with accrued
interest I enter the full interest paid, and then a second entry with a negative number for the accrued interest. I have that right, don't I?
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The reason I ask, is that TaxCut won't accept negative interests. Instead it has you check a box on the bottom of the 1099int entry form which allows you to enter a number for the accrual. It says to enter a positive number when you buy a bond with accrued interest, but when I do that my taxes go up, when they should go down. I think I have to enter a negative number. I contacted customer service, but I don't think the guy there understood the problem, because he answer was odd.