how to record bond amortization.

BLASTIT

have bonds in investment account set up in quicken. monthly, broker records amortization but it is a non transaction type of adjustment. there is no category for amortization in quicken so how do i record it to keep cost basis same as broker.

Tom Young

Here's one way.  (I assume a market premium is embedded in the bond's cost and that's what's being amortized.)

Record a Return of Principle in the amount of the amortization.  That will put cash in the Account and lower the basis of the bond. 

Then record some sort of interest income as a negative amount; you may have to use a MiscInc or MiscExp action.  That will eliminate the cash.

Tom Young

Here's one way.  (I assume a market premium is embedded in the bond's cost and that's what's being amortized.)

Record a Return of Principle in the amount of the amortization.  That will put cash in the Account and lower the basis of the bond. 

Then record some sort of interest income as a negative amount; you may have to use a MiscInc or MiscExp action.  That will eliminate the cash.

q_lurker

What Tom suggested is what I do.
RtrnCap as a positive value reduces the cost basis of the bond.
MiscExp for the same amount with the category = "_IntIncTaxFree" since the interest paid by the bond goes naturally to that category.  
Memo field on both transactions identifies as an amortization of bond premium, in some cryptic terminology.