Just to muddy the waters, if Money is set up to handle Tbills properly, it
will see the difference between original investment and matured amount as a
capital gain, not as interest.

--
Michael Gordon


"Phantom" <Phantom[at]discussions.microsoft.com> wrote in message
news:B68893C3-2CCD-42E3-8FA2-38C0AB945FBB[at]microsoft.com...
- quote -

That means that you have the report setup incorrectly. If it is not
reporting it all then you have it filtered out somehow, go into customize
and adjust.

--

Neil


"Phantom" <Phantom[at]discussions.microsoft.com> wrote in message
news:E6829D68-C451-4C42-A0F1-DC17B96BB251[at]microsoft.com...
- quote -

Ironically, the report does not report the purchase as an expense.

Phantom

"Remove ABCD from Email address to reply" wrote:

- quote -

Does the same report show the purchase as an expense.

--

Neil


"Phantom" <Phantom[at]discussions.microsoft.com> wrote in message
news074D8BF-7730-4437-8BFC-7D2EF6C1D5C1[at]microsoft.com...
- quote -

For all practical purposes the all seems well within the investment
portfolio. The portfolio manager also reflects the yield properly. However,
in income and expense reports money books the entire redemption as income.
Perhaps one of you can run a test in your portfolio by purchasing a 91 day
tbill (back valued to say mature tomorrow). Tomorrow redeem the bill to
receive par then generate an income expense statement for the month.

Regards

Alex

"Remove ABCD from Email address to reply" wrote:

- quote -

I am still having problem understanding. If you have recorded the purchase
as a buy and you have recorded the redemption as a sale then Money would
only see the "profit" as the difference in the buy versus sell which should
be an accurate accounting of your profit. When you check your investment is
the cost wrong or is the sale wrong?

--

Neil


"Phantom" <Phantom[at]discussions.microsoft.com> wrote in message
news:B68893C3-2CCD-42E3-8FA2-38C0AB945FBB[at]microsoft.com...
- quote -

Hi All

Just to clarify: I am using the investment accounts to track my investment
in TBills and Bonds. The issue is on maturity I redeem the TBill. The
entire redemption is treated as income - that is - both the principal and
interest. This of course is the incorrect treatment since only the
difference between the original investment and the matured amount is actual
income. The question then is how to resolve this behaviour by money.
Ironically, in the portfolio, it tends to report the yield etc correctly but
in income and expense reports it consolidates everything as income.

Kind regards

Alex

"Dick Watson" wrote:

- quote -

I think we have multiple confusions here. I think Phantom is confused
(buying a security isn't an expense). But difference between the purchase
price of a t-bill and its maturation is interest (FIs, including the
Treasury, report it on a 1099-INT). Unfortunately, Money doesn't know how to
handle it either.
--
Michael Gordon


"Remove ABCD from Email address to reply" <neil154ABCD[at]gmail.com> wrote in
message news:uMHIHkauHHA.4952[at]TK2MSFTNGP04.phx.gbl...
- quote -

Agreed that seems like something it should not be doing if Phantom's using
Money the way you and I do. Of course, we also don't know where Phantom is
seeing the income reported.

"Remove ABCD from Email address to reply" <neil154ABCD[at]gmail.com> wrote in
message news:%23pN9NtduHHA.2008[at]TK2MSFTNGP03.phx.gbl...
- quote -

Since Phantom said that the sale of treasury bill was creating an
unrealistic income, I assume that the sale is being recorded solely as
income and not income and return of principal. It seems that he is not
recording the purchase & sale in the same manner and therefore resulting in
a unrealistic income

--

Neil


"Dick Watson" <littlegreengecko[at]mind-enufalready-spring.com> wrote in
message news:OdUSfAbuHHA.1496[at]TK2MSFTNGP06.phx.gbl...
- quote -

Perhaps I'm mistaken, but I inferred that this is what Phantom was already
doing. If not, I agree this is the right starting strategy.

"Remove ABCD from Email address to reply" <neil154ABCD[at]gmail.com> wrote in
message news:uMHIHkauHHA.4952[at]TK2MSFTNGP04.phx.gbl...
- quote -

From a tax standpoint the purchase of the treasury bills is not an expense
(other than any service charge) and therefore should be shown as an
investment. When the treasury bill is sold or matures the principal is
considered return on investment and not income. I think you can handle this
in a normal investment account or you could handle it in a loan account. I
not sure which might be better for you, if it were me I would use investment
account.

--

Neil


"Phantom" <Phantom[at]discussions.microsoft.com> wrote in message
news:936C2109-F474-4B2A-BAAD-FD3D303AFAE9[at]microsoft.com...
- quote -

Dear Colleagues

On maturity of an investment in Treasury Bills, both the principal and the
interest are reflected as income but when I purchase a new Treasury Bill the
purchase is not reflected as an expense. This is creating a unrealistic
income expense statement as the investment is being rolled over into new
issues of treasury bill and each time it matures it is being recorded as
income.

Is there anyway to fix this so that the it is being recorded more
accurately. I am currently using Money 2006.

Regards

Alex

Regards