amortize loss on pre-incorporation expenses?

[Mark Hedges]

On Mon, Aug 21, 2017 at 5:18 PM, Mark Hedges <mark.hedges at weirdvibe.com> wrote:
> Hi, so, thanks for an amazing accounting program.  I'm still learning
> how to use it.
>
> Over the past few years, I personally paid artists to produce comic book art.
>
> I created an S-corporation to finish the work and publish.
>
> An accountant recommended that I transfer the intellectual property,
> tangible artwork, script copyrights etc. to the new corporation in
> exchange for shares of stock equal to what I paid for it previously,
> i.e. if I spent $5000, I will exchange for 5000 shares.
>
> I will have very little personal or business income this year, so
> claiming this as a loss on taxes this year will not be helpful.
>
> The accountant said I can amortize the loss until future years and
> claim it as an expense on a future year's tax return.
>
> How do I account this in GnuCash?

Maybe in this case, I would have $5000 as an Equity > Capital Assets
or Equity > Project Asset, and then a $5000 Expense for the "value" of
the exchange of stock on the bill of sale for the stock-for-asset
exchange?

Or would it just go under Assets, in a special account for
intellectual property assets?

Of course I know it's not worth anything "real" until I sell issues,
derivations, etc., but the point is how to account and write off the
prior expense properly.

Thank you.

Mark

--
Mark Hedges
CEO Weird Vibe Inc.
+1-310-487-7123
https://weirdvibe.media