Application of _IntInc (and _DivInc) to IRA Transactions instead of _IntIncFree....

John Dozier

I have noticed that the categories IntInc and DivInc are being applied to transactions in my IRA accounts instead of the more appropriate IntIncFree and DivIncFree. I have not found a way to correct old transactions or make configuration changes that would prevent this happening on future transactions. And in the canned Taxable Income YTD section of the Planning/Tax Center, they are thus incorrectly shown as Taxable Income. Anybody know of a fix for this? And yes, those accounts are tagged as Tax Deferred.

NotACPA

It's not necessary to use the "free" actions in your IRA accounts. Since the account is designated Tax-Defered, the IntInc & DivInc actions will already be excluded from your tax reports.

The "free" actions should be used when the SECURITY is tax free … and it's ill-advised to hold tax-free securities in a tax-defered account.

John Dozier

Good answer. I failed to track down the individual transactions that made up the _DivInc and _IntInc categories in the Taxable Income YTD section of Planning/Tax Center. After doing so, I realized that they were all from my non-IRA accounts. I guess I thought the numbers shouldn't be that high. My bad.

q_lurker

And in the canned Taxable Income YTD section of the Planning/Tax Center, they are thus incorrectly shown as Taxable Income. 

Your problem is the Tax planning pulling from the tax deferred accounts; not the designations as _DivInc vs _DivIncTaxFree. I don’t know why that would be happening. You might try a file validation.

John Dozier

@q_lurker The tax planning problem was an indication of my lack of attention to detail. The numbers were correct. I assumed they were too high and attributed that to problems in the use of _DivInc and _IntInc, which was my mistake. Problem solved…no problem at all.