Cap gains question

[Jon Lapham]

Jean-David Beyer wrote:
> Jon Lapham wrote:
>> -Income
>>    -Unrealized Gains
> 
> 
> I doubt the above. From a tax point of view, unrealized gains are not 
> gains at all and not taxable. 

Oh, sure.  The reason it is there is simply so you have a place to put 
unrealized tax gains, while keeping it separate from your taxed realized 
gains.  Of course, you do not have to keep track of unrealized gains, 
and then you do not need this account.  I just stuck it in there because 
in the chapter on cap gains there is an example that used it.

> There may be exception if you own a 
> Chapter S corporation where you are taxed on profits of the corporation 
> even if they are not distributed to you as a stockholder. Best advice 
> here is to never own an Chapter S corporation.
> 

Exceptions, exceptions.  I'm slowly realizing that 99% of accounting is 
quite straight-forward, but that last 1% ...

But, anyway, then for your exception you would probably need an 
"unrealized gains (Chapter S)" account.  I'm going to pretend I didn't 
just learn this.  :)

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  Jon Lapham  <lapham at extracta.com.br>          Rio de Janeiro, Brasil
  Work: Extracta Moléculas Naturais SA     http://www.extracta.com.br/
  Web: http://www.jandr.org/
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