I received a 1099-B for a US treasury note that matured. I had purchased the note for a discount because it was not a new issue. The cost of the note was $49,400. I received $50,000 in proceeds when the note matured. It was a short term transaction because the note matured in less than one year. Do I report the $600 (accrued market discount) on Form 8949 and if so do I report it on line 1 box g or h?
Yes, you need to report the $600 market discount that accrued on the U.S. Treasury note on your tax return. Since the note matured in less than one year, it is considered a short-term transaction. For tax purposes, the market discount is treated as interest income. However, it is reported differently than regular interest income. You should report the sale of the Treasury note on Form 8949, which is used to report sales and other dispositions of capital assets. Here's how you would report it: 1. On Form 8949, you would list the sale of the Treasury note. 2. You would enter the proceeds of $50,000 in column (d). 3. You would enter your cost basis of $49,400 in column (e). 4. The difference, which is the $600 market discount, would be your gain and would be entered in column (h) as it is an adjustment to gain or loss. Since it's a short-term transaction, you would check box C at the top of Form 8949, Part I, because you did not receive a Form 1099-B showing basis was reported to the IRS. Finally, the results from Form 8949 are carried over to Schedule D (Form 1040), where you will calculate your overall capital gain or loss for the year. The short-term capital gains are taxed at ordinary income tax rates. Please note that tax laws can be complex and may change, and it
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