Accrued interest and Dividends
I purchased US Treasury bonds with accrued interest. Now, Quicken downloaded the transaction as follows:
Cost of bond———-$100,000—-Cost Basis
Accrued interest $2500——-Misc expense
Total payment—$102,500
I think the cost basis of the Treasury should be $102,500
When the accrued interest is paid, it's just going to be downloaded as interest
Thoughts???????????????
Comments
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Did you buy your Treasury bond on the market? Because that $2500 look to me that it was the interest due to the Seller of the bond, for the period that the seller held the bond.
When you get the next interest payment, you'll get the ENTIRE amount for the period … even the amount during the time that the seller owned the bond.
SO, that $2500 would actually be a Receivable, not an Expense, and the basis of your bond is $100,000.
BUT, it's odd that it's selling exactly at par, so are the numbers you cited actual, or made-up examples? And, how much will the next interest payment be?
Q user since February, 1990. DOS Version 4
Now running Quicken Windows Subscription, Business & Personal
Retired "Certified Information Systems Auditor" & Bank Audit VP0 -
They are made up numbers just for an example
The reason I'm bringing this issue up is my cost basis for these Treasuries in the Security Detail View is the $100,000—-Even though I actually had $102,500 taken out of my account. I'm showing gains on the Treasury because of the lower basis
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I just figured it out!
Please delete this post if possible.
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I am not an expert on this and can't comment further, but please review this discussion and pick one of the methods discussed there
QWin Premier subscription0 -
What did you figure out? Please explain your solution to help the next person with a similar issue.
-splasher using Q continuously since 1996
- Subscription Quicken - Win11 and QW2013 - Win11
-Questions? Check out the Quicken Windows FAQ list5 -
Here's what I figured out:
The cost basis $459,630 is the sum of the buys. This agrees with the cost basis from Fidelity. The interest income is the sum of Interest income minus the accrued interest($1544, $404, $615,$94)
Returns YTD are $10,661, Total Returns are $23,863———————-These are correct after my computations
Quicken handles the download correctly.
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