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Amortize Premiums on Tax-Exempt Bonds

billr
billr Member ✭✭
edited May 2018 in Investing (Windows)
I assume Quicken 2017 Premier cannot amortize premiums on tax-free bonds. I have reviewed related posts here and all are old or don't specifically address the issue. As most know, these premiums are required to be amortized by IRS and such amortization is important for various tax issues. If Quicken does not handle, is there a program to which Quicken data can be exported? I have too many holdings to calculate this manually. Any suggestions appreciated. PS--my broker does not handle this!

Comments

  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    edited May 2018
    My broker handles the calculations.  In Quicken, I then enter a RtrnCap (to reduce the cost basis) and a MiscExp to convert the cash generated by the RtrnCap back to negative _IntIncTaxFree (as applicable).  

    No version of Quicken will perform the calculation.  I don't know of any software that does; maybe a high end investment management package.  

    If you broker is not providing this data, I don't know how they can properly report your cap gains when you do close the holding via sale or call.  Are they not showing a reduced cost basis with each interest payment received?
  • WordStar
    WordStar Member ✭✭
    edited February 2018
    q.lurker said:

    My broker handles the calculations.  In Quicken, I then enter a RtrnCap (to reduce the cost basis) and a MiscExp to convert the cash generated by the RtrnCap back to negative _IntIncTaxFree (as applicable).  

    No version of Quicken will perform the calculation.  I don't know of any software that does; maybe a high end investment management package.  

    If you broker is not providing this data, I don't know how they can properly report your cap gains when you do close the holding via sale or call.  Are they not showing a reduced cost basis with each interest payment received?

    Great response.  I've been doing this for years.  
  • Unknown
    Unknown Member
    edited February 2018
    q.lurker said:

    My broker handles the calculations.  In Quicken, I then enter a RtrnCap (to reduce the cost basis) and a MiscExp to convert the cash generated by the RtrnCap back to negative _IntIncTaxFree (as applicable).  

    No version of Quicken will perform the calculation.  I don't know of any software that does; maybe a high end investment management package.  

    If you broker is not providing this data, I don't know how they can properly report your cap gains when you do close the holding via sale or call.  Are they not showing a reduced cost basis with each interest payment received?

    Thanks for the help, but that can be time consuming if you have a lot of bonds and to duplicate the entry monthly.  Maybe this is something quicken can work on.
This discussion has been closed.