Do I pay/receive accrued interest (AI) when buying/selling a bond mid coupon period?

IBKR registers bonds in "street name" which means that interest payments are made from the issuer to IBKR who, in turn, deposits the payment directly into the client's brokerage account. This is generally processed on the coupon payment date, but can be delayed slightly when occurring on a non-business day or if the funds have not yet been received from the issuer or depository/agent…

Accrued interest paid when a bond is purchased is not taxable to the buyer; instead it is taxable income to the seller. Your Form 1099-INT reports the full interest payment credited to your account. Consult your tax advisor for the proper reporting of accrued interest paid at purchase on your return…

Certain corporate and government bonds, if purchased between coupon payment dates, will trade with accrued interest, meaning that the purchaser pays the seller for any interest accrued since the last payment date. The purchaser, in turn, will receive that amount from the issuer on the following coupon payment date. To reflect this transaction and ensure proper tax reporting of cost basis and interest income, IBKR will post this as a negative interest purchase accrual to the…

A bond can pay a short (or long) coupon when the scheduled payment is for a period different than its standard intervals. This tends to be more common for the first coupon after issuance but can also apply to the final coupon before maturity.

For example, if a bond is issued on April 1…