Tag Archives: 1099-OID

· Click the Easy Actions menu, click Return Of Capital, and then fill in the Return Of Capital dialog box. Describe the accrued but unpaid interest as a negative return of capital. (This is the same technique used earlier to deal with accrued interest paid with a bond purchase.) Continue reading →

You aren’t always paid the interest that you’ve earned. If you purchase a negotiable certificate of deposit (CD), for example, the bank issuing the CD may accrue the interest you’ve earned through the end of the year and then add this amount to the CD’s value. If you purchase a zero-coupon bond, you don’t receive periodic interest payments at all. Rather, the bond issuer accrues interest each year and then repays the bond and the total accrued interest at maturity Continue reading →