Schwab Maturing of Treasury Bills

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jms397
jms397 Member

I have recently started purchasing Treasury Bills in my Schwab account. When the T Bill matures, it shows up as two transactions on Schwab: one a "Full Redemption" which subtracts out the position and a separate "Full Redemption Adj) which puts the dollars back into my account. What gets downloaded are two "Deposit" transactions: one which has no dollars and no quantity which doesn't do anything and a separate "Deposit" that puts the dollars into my account. The net result is the value of my account gets overstated by the amount of the T Bills because the old T Bill position doesn't get cleared out.

What I do to fix the problem is change the "Deposit" containing the dollars into a "Sell" transaction which then puts the dollars back into the account but also clears out the old position as I enter the correct quantity. Unfortunately, this only fixes part of the problem. When I do the "Sell" transaction, Quicken thinks I have a capital gain on the T Bill sale. The IRS treats that amount as interest and not a capital gain. Therefore, I also input another transaction to credit the Capital Gain amount and debit the Interest Income amount. Quicken creates two transactions here which is fine. This gets me closer to being correct but not all the way there.

Interest on T Bills is usually exempt from State Income Tax (at least in Illinois where I live). Schwab will send me a 1099-Int that separates T Bill interest from other interest. Quicken will lump it all together. Not sure how I can separate it.

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