Accrued interest paid on bonds
Varies
Can You Write Off Accrued Interest Paid on Bonds?
Short answer: Yes, in effect: accrued interest you pay the seller when buying a bond between payment dates is subtracted from the interest income reported on your 1099-INT.
Show it on Schedule B as an accrued interest adjustment so you aren't taxed on interest that belonged to the seller.
Records to keep: Keep receipts, statements, and a note of what each cost was for. Compare itemizing to the 2026 standard deduction ($16,100 single / $32,200 joint) before you claim.
Accrued interest paid on bonds
Varies
Individuals / Personal Taxes
Yes, in effect: accrued interest you pay the seller when buying a bond between payment dates is subtracted from the interest income reported on your 1099-INT.
Business justification
Yes, in effect: accrued interest you pay the seller when buying a bond between payment dates is subtracted from the interest income reported on your 1099-INT. Show it on Schedule B as an accrued interest adjustment so you aren't taxed on interest that belonged to the seller.
Category
- Personal Tax Deductions