Taxpayer A purchased a newly issued $20,000 corporate bond for $19,500 on November 1, 2020....
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Taxpayer A purchased a newly issued $20,000 corporate bond for $19,500 on November 1, 2020. The bond matures on October 31, 2025 and has an annual interest rate is 5% which is paid on October 31 of each year. What is the total interest income taxpayer A must report on their 2020 and 2021 tax returns if they want to minimize the interest recognized for tax purposes? $167 in 2020 and $833 in 2021 $0 in 2020 and $1,000 in 2021 SO in 2020 and $975 in 2021 $167 in 2020 and $1,000 in 2021
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