Treasury bill redeemed

[OldCPA]

Client received a 1099B (from one of the large brokerage houses) with a treasury note matured & redeemed showing as a sale. All other redemptions have shown the difference between the purchase price and maturity value as interest income when the bill matured & was redeemed. In other words, only one sale/redemption was reported even though there were several redeemed/matured during the year. Even had one bill disposed of before maturity and had a small loss but it was not reported on the 1099B, the difference between the purchase adjusted cost & the disposition was shown as interest. None of the purchases were through a secondary market.

My understanding is that, the difference between adjusted cost & redemption that treated as interest, is not taxable to California.

My concern is that because this one redemption of a fully matured Treasury bill is being reported on the Schedule D/Form 8949, California is treating this as taxable.

Am I missing something? Should I be adjusted somehow so it is not taxable to California?

[qbteachmt]

To be honest, this is a bit confusing.

You use Bill and Note as if that is interchangeable. Or, your tax payer has some of each?

https://www.investopedia.com/ask/answers/033115/what-are-differences-between-treasury-bond-and-treas...

And then you mention this (whichever) was not on the secondary market, but the 1099-B is from a brokerage and not from Treasury Direct, uh, directly?

"Even had one bill disposed of before maturity and had a small loss but it was not reported on the 1099B"

Do you have a listing of their holdings and transactions?

[OldCPA]

Pardon me, I misspoke on the secondary market issue.  Yes I have all the transactions & the 1099 & 1099B.

The 1099B, which I forgot to mention shows the difference as accrued market discount.  

Rather than a response that was not helpful, I was hoping for some help with Lacerte tax input, given that I logged in and posted to the 'Lacerte Community'.  However, I found assistance on another forum.  I did indicate that the issue in question was a note, not a bill.  That is the one I was asking about.  For context I included that the client had both notes and bills and none of the other redeemed notes or bills were reported on the 1099B, which I thought would indicate that yes I do have a list of their holdings and transactions.

Maybe I'm just tired but I really wish when I asked questions the responses would either be helpful or that posters would not reply.

Hope your tax season is better than mine.

[qbteachmt]

"Maybe I'm just tired but I really wish when I asked questions the responses would either be helpful or that posters would not reply."

And sometimes, it makes sense to the original person posting, but when an outside party reads it, there is some loss of perspective and reference, or a lack of detail that leaves the reader wondering. So, we ask. There is one recent topic here where three peer users each stated our interpretation of what was being stated, because it was that variable as to object and subject, use of pronouns, etc.

For reference, this is not Intuit customer support. End users, who are also busy, are trying to be helpful. A topic that takes too long to read and understand gets a lot fewer replies than one that is well stated. And it's basically a dialog, not AI keyword replies. That means the discussion goes both ways. When you already admit you are confused, what makes you think you explained it with clarity for others? Have a little grace for yourself, that sometimes you are too close to the issue or running the wrong way. Sometimes the questions asked will break loose what is jammed inside your head.

"However, I found assistance on another forum."

It costs nothing but a bit of your time to Share that answer. What you learned elsewhere might be nice to post here, since this is a Peer Community. What you learned might help the next person.

"I really wish when I asked questions the responses would either be helpful or that posters would not reply."

I really wish that people would follow up to either acknowledge the help they get here, or share what worked for them and contribute for others. But, hey, we all get our dreams.