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Tax Law (Questions About Taxes)/muni bond income reporting


I received a 2012 1099 consolidated tax statement. 1099-int shows tax exempt interest for various bonds. In addition there is supplemental tax information page. This page has a municipal oid for a zero coupon bond, and muni accrued interest paid for a bond which also has a 1099-int. There is another page called realized gain loss summary which has a table of annual bond amortization for some of the bonds with 1099-int. One of the entries shows the bond as sold during 2012. What income must i report form the supplemental tax information page and the realized gain loss summary and how do I report it?
Thanks - Louis


Thanks for your question.

Report the sale of the bond on Form 8949, showing the sale proceeds and the adjusted basis in the bond.  Your basis will be your original purchase price plus any interest accrued on the bond.

Hope this helps.

John Stancil, CPA

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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