Why is bond premium reported as income on my 1099. Is it bc they are netting the coupon with the premium amortization?

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I would assume that is correct. If you bought a bond at a premium, that premium is amortized each year so the basis at maturity date is the face value. The amortization would be netted against the interest on your return

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Basically yes. If you buy bonds at premium you’ll be getting higher coupons, but will lose money as the bond moves to par.
You can use the premium amortization to reduce your income.

You’ll want to run it through your tax preparation software / accountant.

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