accounting for stock trades
Derek Atkins
warlord@MIT.EDU
03 Jan 2003 14:56:52 -0500
Herbert Thoma <tma@iis.fhg.de> writes:
> Unrealized gain/loss is no "real" money. But realized gain is actual
> income which I have to pay tax for, realized loss reduces my tax
> payment. So I have to account for realized gain/loss.
Sure, but who claims you need to account for it _BY A SPLIT_?
I have already explained how to account for it through other
mechanisms (i.e. LOTS).
> > > Right now (in GnuCash 1.6) I use a ugly workaround:
> > > In the stock register I "sell" a stock for the price I bought it,
> > > the actual amount goes to the cash account, the difference to
> > > capital_gain or capital_loss.
> >
> > This sounds like an ugly kludge; I'm not convinced it's what we want
> > in the long run.
>
> It _is_ a ugly kludge but I know of no better way. Any suggestions?
Yes. See my other mail on this topic about LOTs.
> > Question: how does quicken keep track of it?
>
> I don't know, I never used quicken.
-derek
> Herbert.
>
> > > Herbert.
> >
> > -derek
> >
> > > > Each transaction is balanced on each
> > > > individual purchase/sale. The lot balances when you sell all the
> > > > shares out of the lot.
> > > >
> > > > The balance of the lot is the sum of the AMOUNTS of the splits in the
> > > > lot. The gain/loss is the balance of the the VALUES of the splits in
> > > > the lot.
> > > >
> > > > > Ed
> > > >
> > > > -derek
> > > >
> > > > > Derek Atkins wrote:
> > > > >
> > > > > >Ed Warnicke <hagbard@physics.rutgers.edu> writes:
> > > > > >
> > > > > >[snip]
> > > > > >
> > > > > >
> > > > > >>What would be the right way to account for this?
> > > > > >>
> > > > > >
> > > > > >Using LOTs (which are currently in development) to relate purchases to
> > > > > >sales.
> > > > > >
> > > > > >
> > > > > >>Ed
> > > > > >>
> > > > > >
> > > > > >-derek
> > > > > >
> > > > > >
> > > > >
> > > > >
> > > > > _______________________________________________
> > > > > gnucash-devel mailing list
> > > > > 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
> > > > _______________________________________________
> > > > gnucash-devel mailing list
> > > > gnucash-devel@lists.gnucash.org
> > > > https://lists.gnucash.org/mailman/listinfo/gnucash-devel
> > >
> > > --
> > > Herbert Thoma
> > > FhG-IIS A, Studio Department
> > > Am Weichselgarten 3, 91058 Erlangen, Germany
> > > Phone: +49-9131-776-323
> > > Fax: +49-9131-776-399
> > > email: tma@iis.fhg.de
> > > www: http://www.iis.fhg.de/
> >
> > --
> > 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
>
> --
> Herbert Thoma
> FhG-IIS A, Studio Department
> Am Weichselgarten 3, 91058 Erlangen, Germany
> Phone: +49-9131-776-323
> Fax: +49-9131-776-399
> email: tma@iis.fhg.de
> www: http://www.iis.fhg.de/
--
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