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How to configure Treasury Bill to track it correctly in Tax Planner?

mikek753b

hi all,

the Tax Planner sees my Treasury Bill as Short Term Gains for Schedule D

I think I'll get 1099-int for Treasury Bill that is reported in way different tax return Schedule B and has way different tax treatment

exempt from State, Local taxes and etc

how and what to configure for Treasury Bill in Quicken ?

I use Buy and Sale in my investment account for a Treasury Bill

Anything specifics for it in Security Details to set?

thanks

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markus1957

If you use Buy and Sell bonds, bought at the discount price and then interest paid along with principal at redemption, it will record properly in tax planner with no cap gain and the interest payment.

mikek753b

@markus1957 thanks for the prompt reply

if I understand your answer I have to have 3 transactions instead of my current 2 buy and sale, but

buy at discount price
sale at the same discount price, so $0.00 gains
record Interest transaction as diff between #2 and #1

is it correct?

should be specific Bond treatment in the Quicken for this case?

markus1957

Yes, correct. Adding- 3. is actually the interest payment plus redeemed principal bought at discount. 2 minus 1 is zero.

mikek753b

thank you for the confirmation.

I've already so many workarounds in my Quicken file …

any chance Quicken will properly treat Bonds and Treasuries?

where in the security we just specify it's Bond or US Treasury type

markus1957

IMO, Quicken handles Treasury Bill transactions properly. You buy at a discounted price; you redeem at that discounted price and receive an interest payment. My online transactions for T-Bonds bought thru brokerages are downloaded and handled properly. I've never had a problem with them.

mikek753b

I'm confused

I see Quicken for TBills uses Short Gains and appropriate Tax form for the gains

for proper Quicken should use Interest instead of gains.

it would require me to edit Sale broker transaction to set the same total as the BoughtX and add extra manual transaction as Interest to get it correct in Tax Planner side

but that will not match Broker history …

so I asked about proper TBill handling by Quicken to not use Gains for TBill case

Probski

If you buy and sell on Treasury Direct the taxes are calculated using the individual tax payer marginal rate (you can even opt for TD to withhold for you but I wouldn't suggest it normally); if you buy and sell in the secondary market (hopefully buying at a greater discount then the initial auction value so reaping higher interest at maturity) that interest is typically treated as capital gain.

mikek753b

thank you for the comment.

this is the issue for me in California , as Capital Gains are CA taxable, so I went with TBill for this matter to avoid CA tax currently

and I'd like that Quicken to help me with Tax Planning to show any TBIll as Interest income