Reply To: Taxation of Called Muni Bond

Home Fairmark Forum Taxation of Investments Taxation of Called Muni Bond Reply To: Taxation of Called Muni Bond

#2368
ruth
Participant

See pages 5 and 6 of IRS Publication 1212 to determine whether there is any OID. If there is, see page 12 of Pub. 1212 figure the accrued OID and add it to the basis of the bond. Gain on the redemption is the difference between the call price and the basis.