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Posted by Arthur Kamlet on July 20, 2008, 9:49 pm
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>> On tax returns, I currently amortize the premium for bonds purchased at a
>> premium.
>>
>> According to IRS publication 550:
>>
>> "You can change your decision to amortize bond premium only with the
>> written approval of the IRS. To request approval, use Form 3115,
>> Application for Change in Accounting Method."
>>
>> I'm considering this change. To keep it simple, I'd change at a time when
>> there are no amortizing taxable bonds in the portfolio.
>>
>> Have any of you out there made this change, or know about somebody who
>> has?
>> Any advice?
>
>What is your alternative to amortization? Why do you prefer it to
>amortization? I will be having to make this decision come next April.
>thanks.
First, we are not discussing tax exempts here since there
is no such election.
The alternative to amortization is to use the purchase price
as cost when calculaing capital gains.
--
ArtKamlet at a o l dot c o m Columbus OH K2PZH
--
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