Track the tax implications of a bond sale or maturation

Use a negative return of capital to cancel out the sale proceeds of any tax free bonds (so there’s no overall realized gain).

Entering a negative amount in the Return of Capital dialog, raises the cost basis and decreases the cash balance in your account.

A return of capital is money paid to you as total or partial repayment of the money you invested. Return of capital differs from a sale because you're not the one who initiates the return of capital. For example, a mortgage-backed security, such as a Government National Mortgage Association (Ginnie Mae), returns capital when the underlying mortgages pay off principal, which is passed on to you.

Open the account you want to use.
Click Enter Transactions.
In the Enter Transaction list, choose Return of Capital.
In the Security name field, select the bond.
Enter the amount as a negative number.

Notes

To ensure that the market value also declines with a return of capital, you must update the price of the security. This new price equals the current price multiplied by the factor (which is supplied in your statement).

A return of capital can be downloaded into Quicken from your financial institution, but note you may need to adjust the downloaded transaction to correctly reflect a negative return status.

Note for our Canadian Customers

The following terms will be different in the Canadian releases of Quicken.

Canada: "Cheque" / United States: "Check"
Canada: "Colour" / United States: "Color"
Canada: "Centre" / United States: "Center"
Canada: "Realise" / United States: "Realize"
Canada: "Behaviour" / United States: "Behavior"
Canada: "Analyse" / United States: "Analyze"