Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
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It is not a deduction. Rather, it reduces the reported interest income on 1099-INT.
Thank you, yes of course an adjustment that reduces the interest total. If I see the ABP adjustment on 1099 INT would you assume it is the correct amortized amount for the year, 2015 and later?
It is for the current year. And only for covered bonds.
The 1099-INT is for one year only.
I assume yours says year 2017. Do keep in mind that some brokerage (such as Fidelity) reports the ABP for both covered and noncovered bonds. The ABP for covered bonds should be shown on the actual 1099-INT. And you will have to dig into the supplemental section to find the ABP from noncovered bonds.
Add the ABP for both covered and noncovered bonds to come up with the total ABP.
Thank you both, excellent answers.