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Enzo3
Dec 3, 2020 4:29 PM UTC
Solved

How do I track treasury bills (they are discounted for 6 months in my situation) when I am on a cash basis for taxes?

I submit $99,500 for example and then in 6 months receive $100,000. How can I track as it is tied to my operating/checking account.
Rustler
RustlerAnswer
Dec 4, 2020 1:18 PM UTC

They may be tied to the bank, but not the checking account.

 

create an asset account called CD, write an eft check and move the 99,500 to the asset account - that is the CD

 

when you redeem it, deposit 500 to the asset account and use interest income as the source account for the deposit.  Then deposit the 100K to the checking account and use the CD asset account as the source for this deposit.

 

That ties the interest earned to the CD, then puts the total amount in the checking account

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2 replies

Rustler
RustlerAnswer
Dec 4, 2020 1:18 PM UTC

They may be tied to the bank, but not the checking account.

 

create an asset account called CD, write an eft check and move the 99,500 to the asset account - that is the CD

 

when you redeem it, deposit 500 to the asset account and use interest income as the source account for the deposit.  Then deposit the 100K to the checking account and use the CD asset account as the source for this deposit.

 

That ties the interest earned to the CD, then puts the total amount in the checking account

    Enzo3Author
    Dec 5, 2020 11:03 AM UTC

    Thanks, this looks like it should work.

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