Taxes - My Tax Return

What is Bond OID accretion ?

Answer:

The difference between the discounted purchase price and the value at maturity is the return or yield on the bond and is called accretion. A bond's accretion must be calculated annually and this amount must be reported to the IRS as income on Form 1099. OID bonds are generally issued at a low or zero coupon and are issued at a deep discount relative to the bond's par value.
CPAdirectory
Answer Provided by: CPAdirectory

Share This Answer

Looking For More?

View all Taxes - My Tax Return Questions

View More Questions