Problem with Maturity of Municipal Bonds
I currently download from Raymond James. When a municipal bond matures, it records the interest income to cash and transfers the principal to cash but does not remove the amount of bonds on the maturity date. It continues to show the full amount of the bonds as an investment.
Answers
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My manual process for a matured bond is:
- Receive the interest
- Amortize the bond premium, if applicable, with RtrnCap and MiscExp transactions.
- Sell the bond for face value. Having any bond premium properly amortized eliminates any capital gains on the sale.
If the financial institution does not do this or its equivalent, I would delete the downloaded transactions and enter manual transactions. I never trust the FIs to get everything correct as I want it.
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Every time I have a bond mature, I have to manually enter a transaction to remove the security. Some months I have many bonds mature and it is a pain to identify the cusip number of the bond and enter the transaction for the amount of the bond. It would be nice if Quicken would remove the bond when it matures. It does return the principal and interest, but the amount of the bond remains.
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It does return the principal and interest, but the amount of the bond remains.
That is your FI telling Quicken to do that. It is then their responsibility to also tell Quicken to “remove” bonds, but that too is possibly problematic because the FI May view it as one $1,000 while Quicken would have it as 10 $100 ‘shares’ of a bond.
In what fashion is your FI returning the principal? That is, what Quicken transaction is it sending.
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500 bond returned as $50,000 Misc. Income
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Financial advisor is sending the transaction as Sale/Redemption. I would think Quicken would remove the security in that case.
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Those two answers are contradictory. A MiscInc is not a sale. Which is it that shows up in Quicken? What the memo field says does not count. What they show on their website does not count. (I’m betting on the MiscInc and that is the wrong transaction.)
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