How do you report income due to discount element in TurboTax ?

[Abdenour Achab]

Hello,

I am doing my taxes right now and, under the "PERSONAL" category, I see "Interest and Dividends", under which there is "Interest from Seller Financed Loans". I reported the interest I earned from my notes there.

But, since I bought my notes at a discount, I also earned income from the notes due to the discount element. Where do I report that ?

I see a section at the bottom named "Miscellaneous Income, 1099-A, 1099-C",  inside which there is "Other reportable income". When I enter my discount element there, TurboTax doesn't offset that income against past investment losses that I carried forward from past years.

It seems to me that a discount element from a note held for long term investments should be offset by investment losses carried forward from past years. And, therefore, that the "Other reportable income" should not be the section where I enter income due to the discount element.

Which brings me to the subject of this thread: How do you report income due to discount element in TurboTax ?

Abdenour

[Shawn M.]

Time for a real accountant.