Update municipal bond cost basis

Unknown Member
edited May 2018 in Investing (Windows)
How do I update a zero cost basis for a municipal bond in Quicken 2017 Premier for Windows?


  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    edited May 2018
    Please expand upon your question.  How did you (in Quicken) acquire the bond?  What transaction type?  The bond currently shows a zero cost basis (in Quicken), or is it, in the real world for some reason, a zero cost basis bond that through some other events is developing a cost basis?  
  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    edited January 2018
    You should receive a 199-OID each year for the amount of interest you need to report on your income tax return.  This "phantom income" - i.e., no cash is received - should be added to your original cost basis.  (For simplicity I'm assuming that you bought the bond when issued.)

    This link:


    explains the process - record interest income and increase cash, record a return of capital and decrease cash in the same amount - and I've certainly used this method in the past. 

    However I just tried a test entry in a Quicken test file and couldn't get it to work UNLESS I used the "Enter Transaction" button to record the return of capital.  If I tried to enter the return of capital transaction directly into the Account Quicken insisted on turning any negative amount I typed in into a positive amount.
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