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Amortization and Accretion 1099-INT

On a Schwab 1099 Consolidated report, there is a mention of Amortization and Accretion Reporting for Fixed Income. Where does this get reported on the tax forms?



    I'm retiring and I have no pride left, so I'll answer.

    I haven't a clue.

    EDIT: But look what I found:

    Now all we need to do is figure out what a Z Tranche is.

    • Since Archie has admitted that it makes it easier for me to say I have no idea.

    For a professional answer you might want to ask this question of a paid support person.  Those who choose to volunteer on this forum are not supported by Intuit.


      Personally I would start IRS.Gov and search for accretion.  I would then call Schwab and ask them for more information.


      • Accretion: Def. =  Growth in size esp. by addition or accumulation.

      Seems I've stumped the pros and the IRS. I couldn't get a definitive answer from Charles Schwab nor the IRS either. From my conversations, it appears that the information is essentially a basis adjustment due to the purchase of the bond being above or below face value. But the difference shown by Schwab for the face value and the cost basis do not equal the amortization/accretion. It may be that the amortization/accretion is accumulative year to year. In any case, the information is not relevant until the bonds are sold. In my client's case, the bonds were not sold in  2011, so I have at least another year to worry about the basis effect.

      • My stock broker said that 'Accretion'  is the formal explanation of how a brokerage house clears it's throat... hopefully they'll provide you with (ahemmm) adjusted basis information that you can simply pass along to the irs

      My dictionary defines accretion as gradual growth or something added to increase growth.The word comes from the same root as accrue.

      My interpretation is, since the account pays a fixed amount each period, some of the account's increase remains in the account, yet may, or may not, be currently taxable.

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