Early withdrawal penalties on certificates of deposit are a special type of tax-deductible expense. Like IRA contributions, alimony, and a few other items, these penalties are deductions from your total income and are used to calculate your adjusted gross income. Continue reading
Tag Archives: Recording
Recording Accrued Interest Shown on a 1099-OID Part (2)
· Click the Easy Actions menu, click Return Of Capital, and then fill in the Return Of Capital dialog box. Describe the accrued but unpaid interest as a negative return of capital. (This is the same technique used earlier to deal with accrued interest paid with a bond purchase.) Continue reading
Recording Accrued Interest Shown on a 1099-OID
You aren’t always paid the interest that you’ve earned. If you purchase a negotiable certificate of deposit (CD), for example, the bank issuing the CD may accrue the interest you’ve earned through the end of the year and then add this amount to the CD’s value. If you purchase a zero-coupon bond, you don’t receive periodic interest payments at all. Rather, the bond issuer accrues interest each year and then repays the bond and the total accrued interest at maturity Continue reading
Recording Interest Income and Reconciling Investment Accounts
Recording Interest Income
It’s likely that you’ll earn interest or other income on the cash balances you hold in your brokerage account. To record this interest or income, click the Easy Actions menu, click Record An Income Event, and then fill out the Record Income dialog box as described earlier. Continue reading
Online investing: Recording Share Splits
A share split occurs when the mutual fund or company gives each current shareholder new shares. In a two-for-one split, for example, a shareholder receives one new share for each share already held. Someone who holds 100 shares prior to the split. Continue reading