Amortizable Bond Premium

[beepyoyo-sbcglob]

A trust has amortizable bond premium on both in-state tax exempt bonds and out of state tax exempt bonds. For purposes of preparing the state (Calif) return I should be able to reduce the interest income on the out of state bonds by the amortized bond premium attributable to such bonds. How do I generate that result? (I see 3 entry boxes - total municipal bond interest, in-state municipal bond interest and amortizable bond premium. If I use the drop down to enter the premium and then separately enter the premium for each kind of bond, entering the state for the premium on the in-state bonds, I get the wrong result. I've also tried various combinations of US/state and N/S without success). Help!

[George4Tacks · Accepted solution]

I write a separate line with negative entries for Bond Amortization and typically also include the name of the 1099 that I am matching up with,. e.g. Smith Barney, etc. 

[beepyoyo-sbcglob]

Thanks for your response but it doesn't seem to resolve my issue. I have a Calif trust for which i'm preparing a 1041.  Assume I have municipal bond interest on Calif bonds of 10,000 and amortizable bond premium of $4,000 with respect to such bonds. Assume further that I also have municipal bond interest on bonds issued by other states of $7,000 and amortiz bond premium of $1,000 with respect to such bonds. For federal purposes I would have 17000 of exempt interest reduced by 5000 of bond premium.  For Calif purposes I should be able to report as taxable $6000 ($7000 of interest less $1000 of corresponding premium). I put $17000 in the Total Municipal bond interest box (with a designation of "US") and I put 10000 in the in state box.  There is a single amortizable bond premium box. I use the drop down and put 4000 in one box and label that as "CA." (I put the total premium in another box.) But that gives me the wrong answer for Calif.  Is there another way to do this?

[PhoebeRoberts]

Put the net CA-exempt amount in the in-state box.

[beepyoyo-sbcglob]

Thx for the reply.  I'll try that.