How to record discounted rate purchase of t-bills

glenn Member ✭✭✭
edited March 4 in Investing (Windows)
I just purchased a t-bills from treasury direct and the purchase was for a discounted rate.  How do I record the discount on the purchase since the actual t-bill is for a higher value?


  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    You use the discounted price as your purchase price:
    When the t-bills mature you sell them for the same price as the Price paid - no gain or loss - and record the "extra" cash, the cash that brings to t-bills up to their maturity value, as IntInc.
  • glenn
    glenn Member ✭✭✭
    That is what I suspected but then my treasury account will never balance to my quicken account.   I thought there would be a way to just adjust the value.  
  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    edited February 3
    "I thought there would be a way to just adjust the value."
    That's what the "quote" is for.  You buy it at a discounted price.  As the t-bills age you change the quote , finally up to the "100" at maturity.
    Then sell the t-bills as I described; instead of "capital gain" you record "interest."
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