Franking Credits

[Graeme Nichols]

Mike or Penny Novack wrote:
> Colin Law wrote:
> 
>> 2009/7/7 Graeme Nichols <gnichols at tpg.com.au>:
>>  
>>
>>> Hi,
>>>
>>> I am wondering how to keep track of Franking Credits. It is easy 
>>> enough to
>>> split dividends to Unfranked and Franked components but a Franking 
>>> Credit is
>>> the tax paid, by the Company, on the dividend at the Company rate of 
>>> 30% and
>>> offsets the individual's tax liability on the dividend.
>>>
>>> It doesn't actually come FROM anywhere.
>>>
>>> How do you account for it here on GnuCash?
>>>
>>>   
> One of the things you might use a set of subsidiary books for. I am 
> assuming that you have to be able to report to each stockholder how much 
> of the dividend is taxable and how much not. It is not at all unusual 
> for an enterprise to have secondary books. Even a very small business 
> probably has a "petty cash" book. In my case, accounting for a 
> non-profit, I need to account for the difference between "qualified" and 
> "non-qualified" donations*. While we don't use GnuCash for that, we could.
> 
> Michael
> 
> * Every five years need to show that at least 33% of donations were 
> "qualified". I don't use GnuCash for that because the national org 
> supplies most of the data we need for that as a spreadsheet and it's 
> easier for me to add to that the comparatively few donations which never 
> passed through national's system.
> 

Hi Michael,

Thank you. I don't really want to set up a second set of books (Account 
file) for something as simple as this. I just want to be able to keep 
track of it in GnuCash so I don't have to rummage through the filing 
cabinet for the dividend notices at tax time. I have been doing that for 
a number of years and as the dividend notices now come via the internet 
I can easily misplace one.

I might try an Equity - Franking Credit account and see how it goes.


-- 
Kind regards,

Graeme Nichols.
...
Registered Linux User 381781 (http://counter.li.org/)
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