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Accrued Interest Paid at Purchase

The amount of accrued interest paid in a buy transaction. This data point is included on the Income and Expenses report for any date period that includes the next interest income payment because accrued interest paid at purchase is deductible against interest income.

For example, if you buy a bond in 2019 and receive the first interest payment in 2020, the accrued interest paid at purchase will show up on the 2020 Income and Expenses report. However, if you buy a bond in 2019 and receive interest income in 2019, then the accrued interest paid at purchase would will not be included on a 2020 report—it would be included in 2019 instead.

The book of record Custodian could derive the income differently, so there could possibly be variances when comparing the income generated on the 1099.