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Bond maturity - example of register transactions?

 kronquick
kronquick Member ✭✭
edited October 2018 in Investing (Windows)
I am having trouble translating the help info on recording a bond maturation, into actual transactions in quicken. I thought someone might be able to provide a report, or some screen prints, of the transactions.

Here's my problem. The help says to enter a Return of Capital, using a negative amount, and then adjust the price. But neither of those transactions has a QUANTITY - to reduce the # of bonds. So you still end up with an entry in the holdings for the bond in the account.

For now, I just entered it as a sale, reflecting the return of the capital, and reducing the quantity to zero. I can see that doing it this way, there might be a problem with profit or loss - because a sale is different from the return of capital - but I'll worry about that at tax time. For now, I mainly want to keep my holding and portfolio value up to date...

Any input is appreciated!
Dan K

I am using quicken for windows, 2016, for Home and Business.

Comments

  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    edited October 2018
    Your basic path is correct.  The maturation (or a call on the bond) fundamentally gets recorded as a sale.  

    There is an underlying issue for some bonds only that you might need to or want to adjust the cost basis of the bond prior to the sale such that the sale arrives at a $0 capital gain.  Only in those circumstance, is the RtrnCap transaction necessary.  
  • Rocket J Squirrel
    Rocket J Squirrel SuperUser, Windows Beta ✭✭✭✭✭
    edited December 2016
    q.lurker said:

    Your basic path is correct.  The maturation (or a call on the bond) fundamentally gets recorded as a sale.  

    There is an underlying issue for some bonds only that you might need to or want to adjust the cost basis of the bond prior to the sale such that the sale arrives at a $0 capital gain.  Only in those circumstance, is the RtrnCap transaction necessary.  

    The "some bonds" are usually bonds which were bought at a premium. The IRS requires muni bonds bought at a premium to have the premium amortized over the holding period. Amortization is optional for taxable bonds, but some brokerages take it upon themselves to amortize the premiums, leaving the bond holder with an "adjusted basis," different from the original basis. The RtnCap transaction can be used to adjust the basis in Quicken. You still need the Sell transaction to get rid of the shares, of course.


    https://www.irs.gov/publications/p550...
    Quicken user since version 2 for DOS, now using QWin Premier Subscription on Win10 Pro.
  •  kronquick
    kronquick Member ✭✭
    edited August 2016
    my thanks to lurker and squirrel - MUCH more info than quicken provided!

    and my apologies for the typo in the subject line - Bone? Bond, obviously!

    Dan
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