Chapter 8 - investment accounts

[Jamestk]

Thanks David for the comprehensive reply. Having revisited my old stock
entries with a view to continuing I seem to recall the problem, that is the
orphaned amount left in shares after offsetting a partial sale.

Here's a rough example:

Lot 1 is for the purchase of 100 shares in eBay, you then sell 50 shares
leaving an ongoing balance from Lot 1 of 50 shares - this from memory caused
a problem further down the line.

What i can do is start from scratch deleting old capital gain/loss entries
using the Lots method to see of any issues still remain, I can of course
report back if that would be helpful.

Is it possible to view the 'Lots' as transactions, i.e a list once they have
been scrubbed to see what's has been offset against what, perhaps it's there
just need to experiment a bit. Last thing, can the lot numbers be added to
the register 'num' column, again to help see individual lots - this would be
useful where you have multiple purchases of the same amount, say 100 shares
over and over - Cheers,      


David Carlson-4 wrote
> As I recall, the lots function was reworked fairly recently, and I believe
> that it can work well if the user is careful about entering his data.
> However, I have not tested it with my data.
> 
> I hope that it can now facilitate correct cost basis tracking and accurate
> gain/loss calculations for transactions involving multiple and partial
> lots.
> 
> I believe Chris is updating the documentation of the lots function to
> match
> the changes, and in his November 15 post to this thread he pointed out
> that
> the lots function does not directly resolve the long standing issue of
> tracking capital gains as defined by US government reporting requirements
> compared to to simply balancing the value of the security account when
> there are closing transactions.
> 
> The government's position that commissions be included in net gain
> calculations is reasonable and can be accommodated in GnuCash by simply
> using net values throughout.  However, this does not allow tracking
> commissions, which, for example, could be useful in a decision whether to
> use a full service brokerage versus using a discount broker.
> 
> Part of the problem of lot tracking when commissions are separated out is
> allocating
> partial expenses along with the gains.  The most difficult part, as I see
> it, is the need to re-assign costs that were incurred in the opening
> transaction(s) to a location where they can be found and reported along
> with the costs incurred in the closing transaction(s) for a tax report.  I
> think that is the essence of the question that Chris asked in his November
> 15 post, and I do not have an answer for him.
> 
> Historically, GnuCash was unable to do this, and that is why many users
> (myself included) have been tracking capital gains separately for tax
> purposes.  The question is whether there is a method to accomplish both
> within GnuCash.
> 
> I suspect that part of a complete package would be a new report designed
> specifically to produce a capital gains tax report including appropriate
> separation of short term vs long term gains.
> 
> Perhaps another user can address those questions in a way that could work
> at least in all jurisdictions that have capital gain reporting rules
> similar to the US.
> 
> David C
> 
> On Thu, Nov 17, 2016 at 2:15 AM, Jamestk <

> davidjamestk at .co

> > wrote:
> 
>> Could someone clarify what the exact issue is please. My input method has
>> been to enter all parts of the purchase/sale transaction as per tutorial,
>> will this create inaccurate reports due to the following?
>>
>> Was this the original problem which surfaced a while back on my previous
>> visits, it is a while back but I know there  was a reason for
>> discontinuing
>> using lots. - thanks, David
>>
>> > I can imagine the argument that if you are going to include commission
>> in>
>> > capital gains calculations, then you should enter the net price
>> > (including> commission), and not record commission as its own split,
>> > regardless of this> adding an misleading price into the price database.
>> > You could just add the> commission as part of the transaction
>> description
>> > if you wish to track it.I include commissions and fees in the buy and
>> sell
>> > splits because it makes the gain/loss calculations much easier. True,
>> the
>> > price won't match what the exchange reports, but it's the effective
>> price
>> > I paid and immediately reflects the unrealized loss caused by having
>> paid
>> > those commissions and fees. That approach works only because
>> commissions
>> > and fees are deductible in US tax law.
>>
>>
>>
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