Treatment of OID
Five years ago, I opened a 5 Year Market Linked CD. Each of those 5 years I paid OID in anticipation of appreciation on my investment. After 5 years there was no appreciation, and I recovered my initial investment. 1099R issued as Non-Covered. I plan to provide my cost as my initial investment plus the OID I paid of those five years, thus creating a loss of $9K. I have loss carry overs from prior years so it appears this $9 K will just me added to my loss carry forward. Is this correct and if yes, is there any way I can recover the tax I paid in OID that I paid over the last 5 years?
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