need help setting up transactions for sale of house

[Cam Ellison]

J E wrote:
> I am trying to set up the accounting for the sale of a house
> in GnuCash.  I have already received the payment in my checking
> account, but I want to account for commisions/fees and also show
> the capital gain in a split transaction, but am unsure of how to 
> do this.
> 
> The numbers are:
> Checking acct. Deposit: $375000
> Sold (2007):            $400000
> Bought (1987):          $150000
This ^^^^^ is your problem.  Get rid of it.

> Commissions/fees:       $ 25000
> Net capital gain:       $225000
> 
> I have tried doing a split transaction, but always wind up with
> an Orphan-USD, and totally confused.
> 
> I have tried setting up:
> 
> Assets:Fixed:House:Cost        $150000 (Equity:Opening Balances)

I would do it this way, starting with the entry above, then two separate 
transactions:

Appreciation       Assets:Fixed:Home:Appreciation 250.000
                    Equity:Opening Balances       (250,000)

Sale               Assets: Fixed:Home            (400,000)
                    Assets:Current:Chequing        375,000
                    Expenses:Commissions/Fees       25.000

The actual gain should be shown, and that's the Appreciation entry. 
Assets:Fixed:Home will show a total of 400.000.  The sale price of the 
house then appears in that account, zeroing it.  For tax purposes, I 
think you need to show the actual appreciation, and any related expenses 
should have their own entry.

HTH

Cam

-- 
Cam Ellison, Ph.D. R.Psych. #1417

Cam Ellison & Associates Ltd.
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