Tagging additional values on transactions
Derek Atkins
warlord@MIT.EDU
11 Aug 2002 10:35:11 -0400
Fair enough.
Another thing you could do is make franking credits into a 'stock'
type with zero cost-per-credit. Then, assuming you get a $10 dividend
re-invested as 5 shares, with a $2.50 franking credit:
Dividend
MyStock 5 $2 $10.00
Income:Div $10.00
Credits:FCR 2.50 0 0
This would balance out, but it would be _really weird_
Similarly, a currency with a zero exchange rate would be just as
unwieldly.
So, really, I don't have a good suggestion, since these Franking
Credits don't really correspond to anything in reality. They seem to
be a fake construct for tax purposes (or they really are a special
income type).
-derek
Martijn van Oosterhout <kleptog@svana.org> writes:
> On Sat, Aug 10, 2002 at 10:55:24AM -0400, Derek Atkins wrote:
> > What is this "Franking Credit" and how does it relate to the rest of
> > the dividend transaction? Keep in mind that a Transaction is a
> > zero-balance object, so this "Franking Credit" has to balance
> > something, I'm just not sure what it is balancing. Could you
> > give a concrete example?
>
> As I mentioned in my other email, it's not a real credit as such, but a
> figure to fill in your tax return to indicate the tax the company has
> already paid on it. You're right, I hadn't thought of the balencing issues.
>
> Say you have shares in company X. They give you $100 in dividend. Normally
> that would be counted as $100 income and you would pay income tax on that.
> However, if the dividend is calculated after the company has paid tax on
> their profits, you shouldn't be taxed on the full amount.
>
> So, on your statement you get a "Franking Credit" which represents what the
> company has paid. On the above amount it might be around $40. So after you
> have worked out your income tax (including the $100) you get to take $40 off
> that.
>
> How do other countries deal with this? I've never though about it.
>
> Anyway, I've figured I can also make up a currency called Franking Credits
> "FCR" and set the exchange rate to zero. Then I can add it to all the
> places I need to and make reports based on it.
>
> This is actually better than adding extra fields to splits. Much neater.
>
> Thanks,
>
> > Martijn van Oosterhout <kleptog@svana.org> writes:
> >
> > > [Please CC any replies, thanks]
> > >
> > > As is the case probably in other countries, but when you get dividends on
> > > shares here there is another figure called a Franking Credit. It's not money
> > > in any sense but you put it on your tax return so you pay less tax. Since
> > > GnuCash is a financial program it would be nice if it could keep track of
> > > these figures also instead of me digging them up.
> > >
> > > I guess it's related to storing tax amounts for businesses.
> > >
> > > Anyway, since each split is stored as a list of values, how hard would it be
> > > to add a new value and have it displayed in the output screen and be allowed
> > > to edit it and such?
> > >
> > > Thanks
> > > --
> > > Martijn van Oosterhout <kleptog@svana.org> http://svana.org/kleptog/
> > > > There are 10 kinds of people in the world, those that can do binary
> > > > arithmetic and those that can't.
> > > _______________________________________________
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> > > gnucash-devel@lists.gnucash.org
> > > https://lists.gnucash.org/mailman/listinfo/gnucash-devel
> >
> > --
> > Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
> > Member, MIT Student Information Processing Board (SIPB)
> > URL: http://web.mit.edu/warlord/ PP-ASEL-IA N1NWH
> > warlord@MIT.EDU PGP key available
>
> --
> Martijn van Oosterhout <kleptog@svana.org> http://svana.org/kleptog/
> > There are 10 kinds of people in the world, those that can do binary
> > arithmetic and those that can't.
--
Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
Member, MIT Student Information Processing Board (SIPB)
URL: http://web.mit.edu/warlord/ PP-ASEL-IA N1NWH
warlord@MIT.EDU PGP key available