how to record bond amortization.
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BLASTIT
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have bonds in investment account set up in quicken. monthly, broker records amortization but it is a non transaction type of adjustment. there is no category for amortization in quicken so how do i record it to keep cost basis same as broker.
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Best Answer
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Here's one way. (I assume a market premium is embedded in the bond's cost and that's what's being amortized.)Record a Return of Principle in the amount of the amortization. That will put cash in the Account and lower the basis of the bond.Then record some sort of interest income as a negative amount; you may have to use a MiscInc or MiscExp action. That will eliminate the cash.6
Answers
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Here's one way. (I assume a market premium is embedded in the bond's cost and that's what's being amortized.)Record a Return of Principle in the amount of the amortization. That will put cash in the Account and lower the basis of the bond.Then record some sort of interest income as a negative amount; you may have to use a MiscInc or MiscExp action. That will eliminate the cash.6
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What Tom suggested is what I do.
RtrnCap as a positive value reduces the cost basis of the bond.
MiscExp for the same amount with the category = "_IntIncTaxFree" since the interest paid by the bond goes naturally to that category.
Memo field on both transactions identifies as an amortization of bond premium, in some cryptic terminology.0
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