I had $24,000 worth of treasure notes redeemed. Their cost was $23,312.12. The form 1099-B shows $687.88 under column "1f code, if any 1g Adjustments" with code D.
If it wasn't for that, I would assume I had a $687.88 capital gain. Does the 1f code change that?
Thanks
You do not have any capital gain. You have two choices: either you report the $687.88 ratably over the years you owned the bond or you report the entire $687.88 as interest income on your 2015 return. In either case, enter your original cost basis and the column (f) code and (g) amount on Form 8949.
Ira Smilovitz
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