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Posted by Margaret on April 26, 2007, 8:54 am
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Hello,
I've been using Quicken for many years, and I opened a CD last year
which matures early May. As this is my first CD, I discovered that
although interest is credited to the CD account monthly, it's only
taxable as a lump sum in the year during which it matures. I've been
thinking about different ways of categorizing this interest so I can (1)
minimize the number of accounts for tracking CDs, should I continue to
invest in them, and (2) easily and accurately tracking the interest on
reports for tax purposes, etc.
When I set up the original CD account, I used the following naming
convention:
<bank>CD_<maturedate>
Should I decide to ladder CDs, I'm wondering if I should use a different
naming convention, such as:
<bank>CD_<num>
and track maturation date(s) in opening and final interest transactions.
This way I could re-use accounts, rather than ending up with lots of
hidden accounts as individual CDs mature.
I've also been using the _IntInc category to track interest, as I do in
my savings and investment accounts. (Don't use "Interest Earned"
category at all.) I realized sometime ago that when I create a new
category with an underscore prefix, I'm unable to delete it. So, I know
I don't want to create any categories with _ as a prefix. I'd also like
to minimize the number of categories, and I'm willing to edit existing
transactions to use the "Interest Earned" category if necessary.
Classes are OK too.
Are there any of you who either ladder CDs or at least use them enough
that you have a good system for achieving the above?
Thanks and Regards,
Margaret
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Posted by Margaret on April 26, 2007, 9:56 am
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Duh, guess I should have poked around in Quicken Help a bit more. I see
that I've used the wrong account type, and CD management is quite
simple. All fixed.
Thanks and Regards,
Margaret
Margaret wrote:
> Hello,
>
> I've been using Quicken for many years, and I opened a CD last year
> which matures early May. As this is my first CD, I discovered that
> although interest is credited to the CD account monthly, it's only
> taxable as a lump sum in the year during which it matures. I've been
> thinking about different ways of categorizing this interest so I can (1)
> minimize the number of accounts for tracking CDs, should I continue to
> invest in them, and (2) easily and accurately tracking the interest on
> reports for tax purposes, etc.
>
> When I set up the original CD account, I used the following naming
> convention:
>
> <bank>CD_<maturedate>
>
> Should I decide to ladder CDs, I'm wondering if I should use a different
> naming convention, such as:
>
> <bank>CD_<num>
>
> and track maturation date(s) in opening and final interest transactions.
> This way I could re-use accounts, rather than ending up with lots of
> hidden accounts as individual CDs mature.
>
> I've also been using the _IntInc category to track interest, as I do in
> my savings and investment accounts. (Don't use "Interest Earned"
> category at all.) I realized sometime ago that when I create a new
> category with an underscore prefix, I'm unable to delete it. So, I know
> I don't want to create any categories with _ as a prefix. I'd also like
> to minimize the number of categories, and I'm willing to edit existing
> transactions to use the "Interest Earned" category if necessary. Classes
> are OK too.
>
> Are there any of you who either ladder CDs or at least use them enough
> that you have a good system for achieving the above?
>
> Thanks and Regards,
>
> Margaret
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Posted by R. C. White on April 26, 2007, 10:28 am
Please log in for more thread options Hi, Margaret.
Please post back in a month or two and tell us how Quicken's CD management
is working out for you.
Several of us here have been investing in CDs for decades and have
complained often about the difficulties in tracking them in Quicken.
Perhaps there are some new features that I have not yet explored.
The problem has not been recording the initial purchase of the CD, at least
since they added the CD classification and we no longer have to treat it as
a stock (10,000 shares of CD at $1 per share) and then add compounded
interest as Reinvested in additional shares. :>( And we've not been able
to schedule regularly monthly or quarterly interest transactions without
some clumsy workarounds, because Quicken won't schedule Investment
Transactions. And, at maturity, we had to record the Sale of the CD - and
Quicken recorded our zero capital gain.
So, if you are happy with the new system after using it for a while, please
post back and clue us in.
RC
--
R. C. White, CPA
San Marcos, TX
(Retired. No longer licensed to practice public accounting.)
rc@grandecom.net
Microsoft Windows MVP
(Currently running Vista Ultimate x64)
> Duh, guess I should have poked around in Quicken Help a bit more. I see
> that I've used the wrong account type, and CD management is quite simple.
> All fixed.
>
> Thanks and Regards,
>
> Margaret
>
> Margaret wrote:
>> Hello,
>>
>> I've been using Quicken for many years, and I opened a CD last year which
>> matures early May. As this is my first CD, I discovered that although
>> interest is credited to the CD account monthly, it's only taxable as a
>> lump sum in the year during which it matures. I've been thinking about
>> different ways of categorizing this interest so I can (1) minimize the
>> number of accounts for tracking CDs, should I continue to invest in them,
>> and (2) easily and accurately tracking the interest on reports for tax
>> purposes, etc.
>>
>> When I set up the original CD account, I used the following naming
>> convention:
>>
>> <bank>CD_<maturedate>
>>
>> Should I decide to ladder CDs, I'm wondering if I should use a different
>> naming convention, such as:
>>
>> <bank>CD_<num>
>>
>> and track maturation date(s) in opening and final interest transactions.
>> This way I could re-use accounts, rather than ending up with lots of
>> hidden accounts as individual CDs mature.
>>
>> I've also been using the _IntInc category to track interest, as I do in
>> my savings and investment accounts. (Don't use "Interest Earned"
>> category at all.) I realized sometime ago that when I create a new
>> category with an underscore prefix, I'm unable to delete it. So, I know
>> I don't want to create any categories with _ as a prefix. I'd also like
>> to minimize the number of categories, and I'm willing to edit existing
>> transactions to use the "Interest Earned" category if necessary. Classes
>> are OK too.
>>
>> Are there any of you who either ladder CDs or at least use them enough
>> that you have a good system for achieving the above?
>>
>> Thanks and Regards,
>>
>> Margaret
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Posted by Margaret on April 26, 2007, 11:00 am
Please log in for more thread options Hi RC,
I will definitely post back and let you know. My current CD matures on
05/07/2007, so that will yield a bit more info. I'll be interested to
see what Quicken uses the mature date for, or if it's just a place to
record that info (in the security details for the CD, that is). I've
now recorded the monthly interest as "Interest," so it's gets
categorized as "_IntInc," but I'm a bit disappointed that Quicken
doesn't somehow use the mature date to apply interest to the year of
maturity and not to each year that I own the CD.
I use TaxAct, so I can play with different reports, but for TurboTax
importers, interest would be incorrect for all years, since Q applies it
to the year posted. Do you have any workaround for this? I've been
mulling over using "Miscellaneous" and either making a new category or
using a class to make reporting simpler, but I can just do a security
report for the CD. This still leaves my tax reports incorrect, however.
The CD doesn't pay that much more than my savings account, so it was
really an exercise in learning how CDs work. Not sure if I'm going to
renew or close the CD yet, but if it's extra work in Qicken, I may just
close it.
Anyway, I'd be interested in any thoughts and/or workarounds on the above.
Thx and Regards,
Margaret
R. C. White wrote:
> Hi, Margaret.
>
> Please post back in a month or two and tell us how Quicken's CD
> management is working out for you.
>
> Several of us here have been investing in CDs for decades and have
> complained often about the difficulties in tracking them in Quicken.
> Perhaps there are some new features that I have not yet explored.
>
> The problem has not been recording the initial purchase of the CD, at
> least since they added the CD classification and we no longer have to
> treat it as a stock (10,000 shares of CD at $1 per share) and then add
> compounded interest as Reinvested in additional shares. :>( And we've
> not been able to schedule regularly monthly or quarterly interest
> transactions without some clumsy workarounds, because Quicken won't
> schedule Investment Transactions. And, at maturity, we had to record
> the Sale of the CD - and Quicken recorded our zero capital gain.
>
> So, if you are happy with the new system after using it for a while,
> please post back and clue us in.
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Posted by Jim Orson on April 26, 2007, 11:48 am
Please log in for more thread options Hi Margaret:
Interest on a CD is taxable in the year it is paid just like any other bank
deposit account. You should have received a 1099INT from the bank for
interest paid and thus taxable in 2006. Quicken is correct in the way it is
handling the interest.
Jim...
> Hi RC,
>
> I will definitely post back and let you know. My current CD matures on
> 05/07/2007, so that will yield a bit more info. I'll be interested to see
> what Quicken uses the mature date for, or if it's just a place to record
> that info (in the security details for the CD, that is). I've now
> recorded the monthly interest as "Interest," so it's gets categorized as
> "_IntInc," but I'm a bit disappointed that Quicken doesn't somehow use the
> mature date to apply interest to the year of maturity and not to each year
> that I own the CD.
>
> I use TaxAct, so I can play with different reports, but for TurboTax
> importers, interest would be incorrect for all years, since Q applies it
> to the year posted. Do you have any workaround for this? I've been
> mulling over using "Miscellaneous" and either making a new category or
> using a class to make reporting simpler, but I can just do a security
> report for the CD. This still leaves my tax reports incorrect, however.
> The CD doesn't pay that much more than my savings account, so it was
> really an exercise in learning how CDs work. Not sure if I'm going to
> renew or close the CD yet, but if it's extra work in Qicken, I may just
> close it.
>
> Anyway, I'd be interested in any thoughts and/or workarounds on the above.
>
> Thx and Regards,
>
> Margaret
>
> R. C. White wrote:
>> Hi, Margaret.
>>
>> Please post back in a month or two and tell us how Quicken's CD
>> management is working out for you.
>>
>> Several of us here have been investing in CDs for decades and have
>> complained often about the difficulties in tracking them in Quicken.
>> Perhaps there are some new features that I have not yet explored.
>>
>> The problem has not been recording the initial purchase of the CD, at
>> least since they added the CD classification and we no longer have to
>> treat it as a stock (10,000 shares of CD at $1 per share) and then add
>> compounded interest as Reinvested in additional shares. :>( And we've
>> not been able to schedule regularly monthly or quarterly interest
>> transactions without some clumsy workarounds, because Quicken won't
>> schedule Investment Transactions. And, at maturity, we had to record the
>> Sale of the CD - and Quicken recorded our zero capital gain.
>>
>> So, if you are happy with the new system after using it for a while,
>> please post back and clue us in.
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