Category field not showing up on Bond Sale transaction

deriter
deriter Member ✭✭
A bond in my savings account was called. It shows up as a "realized gain" category in reports. It is not a realized gain. However, if I click on "edit" on the transaction, there is no category field for me to change. How do I remove the realized gain category.

Answers

  • Rocket J Squirrel
    Rocket J Squirrel SuperUser ✭✭✭✭✭
    It is a realized gain (or loss) if you bought the bond at one price and it was called or sold at a different price.
    Quicken user since version 2 for DOS, now using QWin Premier Subscription on Win10 Pro.
  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    edited March 8
    "A bond in my savings account was called."
    What is the "Account Type" of this Account?  I have to assume the Account is some sort of Investment Account - Brokerage, IRA, etc. - because if it was a Banking type you could change the Category to whatever you wanted it to be. 
    Generally speaking a "Call" is treated like a sale by the bond owner, even though you didn't initiate the sale, and gain or loss on the call/sale is appropriate.  There can be exceptions, of course, like if the bond was a zero-interest bond then some part of the proceeds would be considered interest and the proceeds of the sale would be adjusted accordingly, affecting the ultimate gain or loss on the sale. Or, if the call was initiated between coupon dates (a rare event), again some part of the cash received would be considered interest and some part would be considered proceeds for the sale.
    If you downloaded this call from a financial institution that understands how the accounting works in a call situation, (financial institutions don't always get the actual account right), then presumably they've provided you with a correct download, a "Bonds sold" action that results in a gain or loss.
    If you think the accounting is incorrect you can simply delete the downloaded transaction and create whatever transaction you think is correct.
    What do you think the correct accounting should be here?
  • deriter
    deriter Member ✭✭
    On further investigation, I realized that previous called bonds were also posted as "realized gain". The problem is that on previous bonds, the realized gain was zero. This bond was no different. The principal amount and the total sale are the same, but the downloaded realized gain posted as the full value of the bond. It should have been zero. I don't want to start editing amounts to make the realized gain zero for fear of screwing up the bond history.
  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    "The principal amount and the total sale are the same, but the downloaded realized gain posted as the full value of the bond. It should have been zero. I don't want to start editing amounts to make the realized gain zero for fear of screwing up the bond history. "
    Well that's clearly because for whatever reason the basis hasn't been entered.  Proceeds - $0 = Gain.    Delete the trade and enter it manually and see if that gets you the correct answer.  You're not "screwing up the bond history" by entering a trade manually.  But leaving "as is" does screw up your accounting.
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