Outside partnership expense transactions

[David T.]

Mike--

Welcome to GnuCash.

You are raising a topic similar to one that has been kicked around recently: how to manage business and personal expenses in GnuCash.

Understanding that I am not an accountant, I think you'll find most accounting-types would tell you to keep your business and personal books entirely separate. In GnuCash, that means different GnuCash files altogether. Your bass strings, as a personal expense, would be entered in the personal books. They are YOUR expense--not the band's.

Bear in mind that in the personal books, you might set up an expense account for your job (as part of the band), connect that expense account up with a tax line, and deduct the amount on your personal taxes, if that is allowed.

Not being a tax or accounting professional, I'd advise you to hire one to advise you about how and where to document expenses, and whether it is legal to write them off. Once you have their input, you're free to run wild.

David

On Feb 16, 2013, at 3:02 PM, Hcorewisco <fenderstrat55 at gmail.com> wrote:

> Hey all,
> 
> I've been using gnucash for the past week to keep records for the band I'm
> in.  It's been fantastic....so much better than my primitive spreadsheet
> skills.  The band is set up as a registered LLC partnership, and we all take
> equal (1/4) shares in any profits/revenue/losses.
> 
> Because of this, I am unsure how to enter my own personal expenses (mileage,
> equipment, food, etc...) which don't use any band assets.
> 
> *Example:*
> 
> We just used $275 of existing band cash to purchase an in-ear monitor system
> for the singer and guitar player.  The system will now belong to everyone in
> the band equally, and is easy enough to list as an expense.  However, if I
> buy a set of bass strings for $40, the band doesn't share that
> expense...it's 100% mine.  How would I enter that transaction into gnucash? 
> We all have draw accounts, so maybe it has something to do with that?
> 
> Or, for anyone tax savvy, should my personal expenses relating to the band
> be something to leave out of the band gnucash file?  
> 
> Should I keep a separate list of them to report on my K-1 instead of being
> calculated into form 1065 with the band?
> 
> I'm pretty gnu (see what I did there?...unoriginal, I know) to all of this. 
> I've spent a lot of time lately just trying to soak up information about
> taxes and accounting so April 2014 goes more smoothly than this year.  Felt
> it was time to reach out, though.
> 
> Appreciatively,
> Mike
> 
> 
> 
> --
> View this message in context: http://gnucash.1415818.n4.nabble.com/Outside-partnership-expense-transactions-tp4659931.html
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