Is it possible to set up a security as both taxable and tax-free

williams_sd

I have a municipal bond ETF which I set up in Quicken’s Security Details with the “Tax Free” option selected. So when I run a Tax Summary report, dividends from the ETF are grouped as “_DivIncTaxFree”.

According to my brokerage’s 1099-DIV, for the first time, a portion of this ETF’s dividends are listed as taxable.

This has prompted me to try and re-classify the portion of the dividends in Quicken as taxable. I tried entering the portion as Miscellaneous (in the Income transaction dialog) and then for Category I selected “Div Income”

But when I run the Tax Summary report, that portion shows up as “_IntIncTaxFree”.

Is it possible to set up a security as both taxable and tax-free? Or is there another way I can enter this dividend so it will be correctly added to the DivInc group in the Tax Summary report?

Jim_Harman

I think you would NOT check the Tax free box for the security. Then record the taxable income as a Dividend and the Tax free part as Miscellaneous with a category of _DivIncTaxFree

NotACPA

Do you have this security set up as a Municipal bond, or as a mutual fund?

As an Exchange Traded FUND it's actually a fund .... and with that change I believe that you can accomplish your objective.

williams_sd

Yes, in the "Edit Security Details" dialog I have the type as ETF.

I have the Asset class as Single - Domestic Bonds.

Is there another change I might try to get both taxable and tax-free categories for this security?

Thanks very much.

Jim_Harman

I think you would NOT check the Tax free box for the security. Then record the taxable income as a Dividend and the Tax free part as Miscellaneous with a category of _DivIncTaxFree

williams_sd

Yeah! I de-selected Tax Free, edited the transaction to Misc with category _DivIncTaxFree and now both the TaxFree and taxable dividends show up in the Tax Summary report. Very pleased - thanks so much!