There must be a website somewhere that describes this, but I sure can't find it. I have bought and sold bonds that had amortized interest. How do I handle this on my income tax?
I won't be paying tax this year regardless, but still want to get it right.
There's a chapter on "Bond Premium Amortization" in IRS Publication 550.
IRS publications are available at:
A different topic is "accrued" interest, which plays a role in an income tax return after a bond is bought between interest dates. The same IRS Publication 550 also has a section, "Accrued interest on bonds."
There is no such thing as "amortized interest" You amortize premium or discount (Capital items, not income items like interest), although it is often treated as what looks like interest. So, what did you amortize? and was it taxable or a deduction to you (in the past, I presume)? and in the light of this and Publication 550, what is your question?
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