Recording partial redemption of Treasury Direct IBond
In December 2021 I bought an IBond for $10,000. In April 2024 I redeemed $10,000 of it and bought a new IBond for same. That left $1,437 in interest on the original December 2021 IBond. (Not sure if it was wise to partially redeem - this was my first IBond - but that's out of scope here.)
In Quicken, I'd followed Jim's orginal scheme below and reduced the share price to $10,000 before recording the sale, then entered an interest transaction for $1,437. Problem is, that interest amount is now sitting in my cash balance and the original 2021 IBond is zero. Before I make things worse by attempting q_lurker's suggestion, is there a best practice for recording partial redemptions, that leaves the original IBond open but doesn't mess with earnings and taxes?
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"In December 2021 I bought an IBond for $10,000. In April 2024 I redeemed $10,000 of it and bought a new IBond for same. "
Are these two numbers supposed to be different, given your "partial redemption" statement? Also you say "you reduced the share price to $10,000 before recording the sale" and "IBond is zero", which says to me the IBond is no longer in the Account. So where does the "partial" sale aspect come into this?
More generally, I guess that the redemption consisted entirely of principal of $10,000 (can you even do this?) and the actual dollar amount into the account and back out of the account was $10,000, and if that's the case then it seems like the "interest" got left behind in the Treasury Direct account? So why make that entry at all?
"I'd followed Jim's orginal scheme below"
This looks like a new post so there's no scheme "down below" to read. Perhaps edit your post to provide an actual link to the article you're referring to?
It can sometimes be difficult to put into words accounting entries made into a Quicken Account and it would be wonderful to actually eyeball all the transactions you're referring to. A screen shot (or screen shots) of all the entries associated with the IBond transactions - original purchase to eventual (partial?) sale - could be illuminating.
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II wold guess that what actually happened is that he redeemed the I bond and received $11,437, of which 1,437was interest. He then purchased another I bond for $10,000, leaving 1,437 in the account.
QWin Premier subscription0 -
You may be right, in which case the $1,437 "sitting in my cash balance" isn't a problem, just an aside comment.
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Yes, @Tom Young, I'd redeemed $10,000 and left the interest behind on the original IBond. This is what TD currently reflects:
After much playing around last night, here's what I ended up doing in Quicken - does this look reasonable?
This was the original post that I was referring to from @q_lurker
Thanks!
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