liabilities, taxes, & reports

[J. Alex Aycinena]

Marco,

> From: Mike or Penny Novack <stepbystepfarm at mtdata.com>
> To: Marco <marco at tampabay.rr.com>
> Date: Mon, 12 Apr 2010 16:26:29 -0400
> Subject: Re: liabilities, taxes, & reports
>
>> Is there any way to make a liability show up on the Tax Report?
>>

What version of gnucash are you using? Are you talking about US Income
Taxes for personal (i.e. Form 1040) or business (i.e. Form 1120)
purposes? What are you trying to do?

>> I haven't been able to find any post regarding this so it makes me think
>> there might be a better way to setup my accounts.  I currently have a
>> setup like this:  I have a loan, that has tax implications (lets say I
>> took out a loan to buy a vehicle for my business).  I have 2 accounts,
>> an interest on the loan expense, and the loan itself liability.  A split
>> transaction payment from a checking account goes to interest (expense
>> which shows up on the tax report) and the loan (liability which I can't
>> make show up on the tax report).  Any way to do this?

For the US, the current stable version 2.2.9 only provides data in the
Tax Report related to personal income taxes which doesn't require
reporting of balance sheet account types for the most part so this is
not really an issue and there is no provision for it.

The next release substantially changes the Tax Report and allows the
inclusion of balance sheet accounts where required (e.g., corporate
and partnership income tax reporting and , for personal taxes, for
IRA-type accounts for Form 8606).

Tell us more about what you are trying to accomplish and maybe we can
provide further useful advise.

>>
>>
>> Marco
>
> Wrong question. It isn't supposed to.
>
> You are going to have to bone up on things like:
>
> 1) Carrying fixed assets
> 2) If financed by taking out a liability, accounting for that and changes as the liability is paid off..
> 3) Computing depreciation, accounting for it as a change in NET value of this asset and as an expense (and THAT is what goes on your taxes)
>
> Michael D Novack (again reminding folks that I am NOT qualified to be answering accounting questions nor tax advice either, not even for my own jurisdiction)
>

Alex