Investment Sale Commission question

Chris Good chris.good at ozemail.com.au
Tue Dec 6 02:46:55 EST 2016


> -----Original Message-----
> From: John Ralls [mailto:jralls at ceridwen.us]
> Sent: Sunday, 4 December 2016 2:12 AM
> To: Chris Good <chris.good at ozemail.com.au>
> Cc: GnuCash Developers <gnucash-devel at gnucash.org>
> Subject: Re: Investment Sale Commission question
> 
> 
> > On Dec 2, 2016, at 10:26 PM, Chris Good <chris.good at ozemail.com.au>
> wrote:
> >
> > Hi,
> >
> >
> >
> > I'd like to update the guide investment selling shares section with
> > some better information about how to handle commission.
> >
> > See attachment 1 for the section I wish to update.
> >
> >
> >
> > The guide example says:
> >
> >
> >
> > and finally PROFIT is $1525 (GROSS_SALE-TOTALBUY-COMMISSION).
> >
> >
> >
> > but shows profit and capital gain as $1600.
> >
> > If you do the sale transaction as per the example, the Trial Balance
> > is OK, but the capital gain is overstated.
> >
> >
> >
> > I've tried to alter the splits to get capital gain of $1525 but either
> > I end up with an Imbalance split of $75 (commission value) or the
> > Trial Balance is out by $75 (Dr > Cr).
> >
> > Please see attachment 2 for the balanced transaction as I think it
> > should be, but which causes the Trial Balance problem.
> >
> >
> >
> > Could some-one please advise how to arrive at a capital gain of $1525
> > and a balancing Trial Balance or explain why this is not possible?
> >
> 
> Chris,
> 
> You *either* expense the commission *or* reduce the capital gain,
> depending on your tax laws. Allowing both would be a very generous tax
> regime indeed, but regardless also produces an imbalance in the book
> because you're counting the commission twice.
> 
> Regards,
> John Ralls

Hi John,

Thanks for very much. Finally I think I understand. Now to document so I
don't have to figure it out again!

Regards, Chris Good
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