accounting for stock trades

[Derek Atkins]

Herbert Thoma <tma@iis.fhg.de> writes:

> Derek Atkins schrieb:
> > 
> > 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_?
> 
> Because I want to see the income/expense in an income/expense account,
> don't I need a split for this?

Why do you want to see the income/expense in an income/expense
account?  If the gain/loss can still be displayed elsewhere through
other means, is it really that vital that it actually show up in a
real income/expense account?

> > I have already explained how to account for it through other
> > mechanisms (i.e. LOTS).
> 
> I don't know the internals of the engine very good. If the accounting
> of realized gain/loss shows up in income/expense accounts then
> erverything is allright. If not then someone has to modify
> the profit/loss report (and probably other reports, too).

Well, yes...  I think the trick would be to create some helper
functions to compute the realized gain/loss..

> > > > > 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.
> 
> OK, I will wait until LOTs are fully functional ... ;-)
> BTW, when do you expect this to happen?

Well, LOTs themselves are in the engine and are functional.  What we
need is the UI hooks for the user to actually use lots automagically
and the helper functions to compute the gain/loss.

>  Herbert.

-derek

> > > > 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
> 
> -- 
> 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