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Show an investment transaction as _IntIncTaxFree

was_a_guruwas_a_guru Member ✭✭
edited May 2018 in
I have an investment account (one of my IRAs) which I set up as a Tax-Deferred account.

However when I enter a transaction for an interest payment (Inc-Div,Inc, etc.), and enter the amount in the Interest field,it does NOT show up under a report for the category _IntIncTaxFree. It instead  it is assigned to the _IntInc category.

When I enter it (Enter Transactions), to get it into the proper category, I have to enter it in the "Miscellaneous Income" field, and then specify it as _IntIncTaxFree category in the "Category for Miscellaneous" Field.

If I have set up the investment account as a tax deferred account why aren't any interest entries in that account assigned to the _IntIncTaxFree category?

Comments

  • Bob_LBob_L SuperUser ✭✭✭✭✭
    edited April 2018
    Whatever category you enter stays that way in Quicken.  IntIncTaxFree is a separate category that is designed for tax free interest in non-qualified (tax deferred accounts such as IRAs, etc.) .  The transaction report you are looking at is properly summarizing the categories as you entered them.  


    HTH
    Bob L.
    Quicken Premier Subscription, Windows 10 Home
  • q_lurkerq_lurker SuperUser ✭✭✭✭✭
    edited May 2018
    The _IntIncTaxFree category is used automatically by Quicken for securities (muni bonds)that are identified as 'Tax Free"; the automatic assignment is on the basis of the security, not the account.  

    Typically the distinction between accounts is addressed at the the report level.  A report for taxable income will not usually include tax-deferred accounts.  If you more clearly identify the report causing you concern, a clearer reply might be possible.  

    Bottom line:  You do not need to use the Miscellaneous appraoch you are using; Quicken handles the data correctly even though the Interest transaction in a tax-defered account is categorized as _IntInc.

    HTH
  • was_a_guruwas_a_guru Member ✭✭
    edited December 2016
    q.lurker said:

    The _IntIncTaxFree category is used automatically by Quicken for securities (muni bonds)that are identified as 'Tax Free"; the automatic assignment is on the basis of the security, not the account.  

    Typically the distinction between accounts is addressed at the the report level.  A report for taxable income will not usually include tax-deferred accounts.  If you more clearly identify the report causing you concern, a clearer reply might be possible.  

    Bottom line:  You do not need to use the Miscellaneous appraoch you are using; Quicken handles the data correctly even though the Interest transaction in a tax-defered account is categorized as _IntInc.

    HTH

    This is a comment regarding the reply I received (see below).

    If I enter interest received in the "Interest" field (of a tax deferred investment transaction) and then run a report on the category _IntIncTaxFree, that transaction does NOT appear. If I run a report on the category _IntInc, I DO see that transaction. So it seems that even though the investment account has been tagged tax deferred, Quicken reports interest entered in that account (in the Interest field) as taxable income.

    Only if I use the miscellaneous field and specifically assign that entry to _IntIncTaxFree does it correctly appear in the report for Tax Free Income and not Taxable Income.
    ------------------------------------------------
    "The _IntIncTaxFree category is used automatically by Quicken for securities (muni bonds)that are identified as 'Tax Free"; the automatic assignment is on the basis of the security, not the account.

    Typically the distinction between accounts is addressed at the the report level. A report for taxable income will not usually include tax-deferred accounts. If you more clearly identify the report causing you concern, a clearer reply might be possible.

    Bottom line: You do not need to use the Miscellaneous appraoch you are using; Quicken handles the data correctly even though the Interest transaction in a tax-defered account is categorized as _IntInc."
  • q_lurkerq_lurker SuperUser ✭✭✭✭✭
    edited May 2018
    I should clarify my statement:  For tax purposes (assorted tax reports within Quicken or transferring data to TurboTax), Quicken handles the data correctly with the default operations; your MiscInc approach is not required in that regard.  This is largely because those processes rely on proper filtering of the tax-defered account from those reports and transfers.  If you are adamant about making the distinction in all reports, you probably need to continue as you are doing.

    Others have noted and complained about the behavior you are citing; this is not new.  As I recall vaguely, there is some report that Includes the _IntInc transaction within tax-free account as _IntInc under one sort method and _IntIncTaxFree with a different sort selection.  The details elude my memory banks at this time and I am not, at this time, willing to dig deeply into these dicussions with the current search engine provided.

    PS:  A search on _DivIncTaxFree expanded to all time turned up two (of three) posts that dealt with this issue.
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