Recording Non-Taxable Dividends

[Anthony]

On Sat, Jan 2, 2010 at 1:08 PM, Mike Alexander <mta at umich.edu> wrote:

> --On January 2, 2010 10:15:21 AM -0700 Richard Ryder <
> rich.ryder at comcast.net> wrote:
>
>  Can anyone suggest how I should record stock/mutual fund dividends
>> that are reinvested within (U.S.) tax-deferred retirement accounts?
>> Increases in the number of shares in such investment accounts do not
>> result from present income. The income is only realized when taxable
>> distributions are paid from the accounts. Gnucash may not care about
>> the distinction between taxable and non-taxable income, but I don't
>> want to have the income counted twice, once when the dividend is
>> posted and again when the money is withdrawn (and the IRS wants it
>> reported as "income").
>>
>
> Why not just record them like any other dividends but against a different
> income account?
>

Because it's not income.  At least, it's not income to him.  It's income to
the trust.