How to accommodate my own house construction costs in gnucash accounts?

[Dorel Ciornei]

I understand and agree with Mike Novack's point on the value of the house.There is one more instance though in which your house market value may be important: your property taxes and insurance.
In my case, they will not consider the 'cost' of the house, but the current market value.Nevertheless, dealing with that is outside GNU Cash as far as I can tell.Cheers!Dorel 

    On Thursday, March 31, 2016 6:25 AM, Mike or Penny Novack <mpnovack at mtdata.com> wrote:
 

 On 3/30/2016 5:40 PM, DaveC49 wrote:
> H
>
> When you have completed the construction, the value of the asset House to
> you  will hopefully be more than the sum of the costs of its construction
> and the cost of the land on which it was built.
I agree with all but the part about "marking to market" and "unrealized 
gains". This is not the usual practice with a house intended for 
personal use rather than investment purposes. Rather, the "basis" of the 
house would be whatever you paid for it, whether that was what you paid 
a previous owner or the total of construction costs, land, fees, etc.  
If and when you sell the house is when capital gains might be considered 
to come into existence and be taxable*. But that might be never << if 
you die and the house passes to your heirs --- while we speak of death 
AND taxes as being unavoidable, in some cases it is death OR taxes >>

Michael D Novack

PS: For some purposes (evaluating financial position when applying for 
credit) the current market value of the house might be relevant. But not 
in terms of "unrealized gain", since for those purpose what you paid for 
the house, the basis, would not be relevant.

* Again with the understanding that I am NOT "qualified" to give such 
advice, when you sell a primary residence and within six months buy 
another for more than you got for the one you sold, you don't have to 
pay "capital gains" but can instead transfer the basis putting off the 
evil day. Which as I have already explained, might never come. I am 
referring to the tax jurisdiction of the US in this.




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