Reporting maturing bonds on tax forms
TurboTax doesn't say much about this and I couldn't find anything of interest on IRS pub 550 (?).
I had some bonds that matured last year. Both were putchased at a discount. Do I need to report the bond and pay tax on the difference in what I paid and the matured value? I know if I paid a premium for the bonds, I could amortize the premium over the life of the bonds, but I couldn't find anything about what do with bonds bought at a discount. I don't think the IRS would let this loophole get away from them - too obvious.