Examples Of Market Discount Bond Sale

Tax Treatment of Market Discount Bonds - The Tax Adviser

To determine the amount of discount accrued ratably, the total amount of discount is multiplied by a fraction: the number of days the taxpayer has held the debt instrument at the time of disposition divided by the number of days after the date of acquisition to and including the maturity date. This is illustrated … See more

https://www.thetaxadviser.com/issues/2007/oct/taxtreatmentofmarketdiscountbonds.html

Guide to Bond Premium and Market Discount - tx.cpa

A change in the timing and/or amounts of payments is significant if it materially defers payments due under the debt. Materiality is determined on the basis of … See more

https://www.tx.cpa/docs/default-source/communications/tax-issues-2017/guide-to-bond-premium-and-market-discount-2.pdf?sfvrsn=2

Joel E. Ackerman, CPA, MST is with Holtz Rubenstein Reminick LLP, DFK International/USA Melville, NY. Unless otherwise noted, contributors … See more

WEBBoth the bond premium and market discount rules generally affect the amount of gain or loss and ordinary income recognized upon sale or disposition of a Bond. Bond premium adjustments to interest income may also apply while the taxpayer holds a Bond. The bond premium and market discount rules both address situations where a Bond holder has ...