Taxes on Treasuries bought on Secondary Market go on Form 8949?

Discussion in 'Taxes and Accounting' started by David Donner, Aug 19, 2023.

  1. If a Treasury Bill is bought on the secondary market in 2023 and matures in 2023, where does the cap gains portion of the gain go on tax forms? On a line on the 8949? The interest obviously goes along with other interest, but I am referring to the gain/loss on the bill itself since it was bought on the secondary market for a premium or a (whatever the word is that is when a bond is bought for a lower price than issued to make up for the interest). For Example you can buy T-Bills on the secondary market with a rate of 2% but is priced differently to make up for the interest change. Where does that gain/loss go on tax forms?
     
  2. elite1974

    elite1974

    if there is an accrued market discount, you put it as code D on the 8949 column f, and then column g is a negative number.
    then you put the amount of the negative number as a positive number on schedule B, called US treasury accrued market discount.

    Also don't forget on schedule B, you also put a separate line called accrued interest (the interest you paid when acquiring it, unless it is a zero coupon which there is none) as a negative number.

    This is one of the many convoluted ways things get reported on the taxes.
     


  3. So, I can avoid all of that by just buying newly issued T-Bills, and not ones on the secondary market? The newly issued T-Bills only require the interest amount to be paid as another line on Schedule B?