On tax returns, I currently amortize the premium for bonds purchased at a premium.
According to IRS publication 550:
"You can change your decision to amortize bond premium only with the written approval of the IRS. To request approval, use Form 3115, Application for Change in Accounting Method."
I?m considering this change. To keep it simple, I'd change at a time when there are no amortizing taxable bonds in the portfolio.
Have any of you out there made this change, or know about somebody who has? Any advice?