Taxation of zero coupon bond

Financial Planning Tax Strategies
1

I have bought a zero coupon Treasury in my brokerage account for the first time.

https://www.investopedia.com/terms/z/zero-couponbond.asp

Obviously the imputed interest is taxable and should be included in my estimated taxes. Will this interst be reported on a 199-INT?

Thanks,
Wendy

2

Obviously the imputed interest is taxable and should be included in my estimated taxes. Will this interst be reported on a 199-INT?

No. But it should be reported on a 1099-OID (where OID stands for Original Issue Discount), assuming that it’s more than $10 Here’s some information about the 1099-OID https://www.investopedia.com/1099-oid-form-understanding-you…

AJ

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