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Discounted US Treasury bonds - will they be reported on both Sch B and D?

Greta
Level 9

Elderly client has a capital gains loss that will outlive him. He wants to buy discounted US Treasuries. Will they report the discounted part as a Sch D gain that will whittle down his carryover loss?

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Norman2001
Level 7

OIDs pay interest, Sch B