investment

[Peter von Kaehne]

There are a bunch of different ways of describing what you want to do.  Partnership is one of them where one brings in money another skill. It seems also akin to a Sharia based loan where the loangiver does not earn interest but participates in the success ( or lack of it), so your accounting method relies heavily on your local laws.

PeterOn 15 Jul 2015 08:49, "Maf. King" <maf at chilwell.net> wrote:
>
> On Tue 14 July 15 10:43:35 nosherwan wrote: 
> > What should I do if some of my relatives gives me money for investing on his 
> > behalf in those case,  buying a property, when the price goes up I sell it 
> > and then we share the profit. 
> > 
> > 
> Hi, 
>
> IMHO, the first thing you should do is seek professional advice about your 
> local laws and tax implications for partnerships (and their dissolution - 
> relatives can fall out over commercial matters just like any other partners). 
>
> Within gnucash, I suggest you have new file for your "partnership property 
> company" and record each partners contribution as equity. 
>
> In your personal books, probably a loan to Assets:LoansGiven:PropertyCo 
> as the profits come back, you gradually reduce that loan to zero, then start 
> recording the excess as income, but it will all depend on your local tax 
> reporting requirements, which I'm not qualified to advise upon. 
>
> HTH, 
> Maf. 
>
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