Unclear on tax basis here -- very elementary query

In June, 2011, I bought 10 tax-free (State and Fed) municipal bonds.
My total cost was $10623.98, which included $165.28 accumulated
interest. There was no commission.
They matured last month. I received $10000, all principal.
Can I assume I have a lt capital loss? If so, what is my basis? Is the
$10623.98 reduced by the $165.28??
Or is there no gain/loss due to my tax free interest payments?
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The bond premium on the municipal bonds are amortized over the remaining life. Each year your basis is reduced by the amortized amount. The offset is that you reduce the amount of tax-free income reported on Line 8b of the 1040 by the amortized amount. At maturity your basis is equal to the face value you receive. So.... you do not have a capital loss. Additionally, when you bought the bond(s) and paid the accrued interest, you should have reduced the amount of tax-free interest paid to you by the amount of accrued interest you paid.
Your original basis was $10,458.70. After amortization, your basis became $10000 at maturity.
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