IRD Determination G3: Yield to Maturity Method for Bonds (worked example)

[Bjauck]

But ird records the buyer as the receiver of the whole interest payment even though the buyer has given the seller his share of it.

One can alter the IRD's prepopulated amounts, and one will need to attach a document explaining why. Perhaps the reporting system cannot cope with the complexity of the actual income tax rules for individuals. Determining what is taxable investment income has a myriad of different regimes. A shareholder's right to a Dividend does not accrue daily but bond interest does. Plus any net realised capital gain on the "financial arrangement" is taxable if the income has not been determined on an accrual basis. This is not advice.