Trial Balance Report with Investment Transactions

[David T.]

Thanks. You’ve mentioned that a couple of times. John has also explained that he fixed this report around that time, so the two probably are connected.

> On Feb 13, 2017, at 11:15 PM, Richard Lindgren <rlindgren74 at gmail.com> wrote:
> 
> I went back and used release 2.6.11 and that one works for me.
> 
> Richard
> 
> ⁣Sent from BlueMail ​
> 
> On Feb 13, 2017, 1:05 PM, at 1:05 PM, "david.carlson.417 at gmail.com" <david.carlson.417 at gmail.com> wrote:
>> 
>> 
>> 
>> 
>> 
>> 
>>   David T,
>> The 'gross' realized capital gain is used in GnuCash to reduce the
>> value of the security account as it is declared as income.
>> If you do not want to accumulate commissions in an expense account but
>> still show them as a separate split line, you could also use another
>> security account line with zero shares for that split line.  I am not
>> sure how that would play with the lot feature.
>> As far as the Trial Balance report being broken is concerned, I think
>> if it is broken it may have been broken early in the release 2.6 series
>> somewhere before 2.6.11.
>> 
>> David C
>> 
>> 
>> Sent from my LG G Pad 7.0 LTE, an AT&T 4G LTE tablet
>> 
>> 
>> 
>> ------ Original message------From: John RallsDate: Mon, Feb 13, 2017
>> 9:29 AMTo: sunfish62 at yahoo.com;Cc: Gnucash;Richard Lindgren;Chris
>> Good;Subject:Re: Trial Balance Report with Investment Transactions
>>> On Feb 12, 2017, at 11:29 PM, David T.  wrote:> > John, > > I truly
>> don't understand what you're saying. The commissions are entered once.
>> I'm not expensing them, as far as I understand it. Everything I have
>> read says that capital gain in the US  is discovered by the formula:>
>> Sale price - purchase price - commissions. > > In my example, for 100
>> shares,  I have:> * a purchase cost of $11.90> * a sale of $3480> *
>> sale commissions of $64.05, entered as splits on the sale transaction>
>>> Gnucash wants me to report gain of $3468.10> My broker and I both get
>> $3404.05> > Please tell me how GnuCash's number is right (especially
>> since my broker is willing to report my number to the IRS).> >
>> Moreover, it appears that the trial balance is perfectly happy to
>> balance out when the gains transactions are duplicated (e.g., if I
>> scrub the account, and end up with my gain of 3404.05 AND gnucash's
>> 3468.10). I'm not sure how that is supposed be right. David,What I'm
>> saying is that you can *either* book the commissions and fees as an
>> expense *or* you can reduce the capital gain income by the amount of
>> the fees. You cannot do both for a single trade. If you book the
>> commissions and fees as an expense then the the capital gain income is
>> the total of selling price x shares - buying price x shares.What your
>> broker's trade confirmation does is break out the net: It tells you the
>> share price and the number of shares, and a gross sale value. Then it
>> deducts (for a sale) or adds (for a buy) the commissions and on a sale
>> deducts the fees and reports a net sale value or cost basis;
>> subtracting the cost basis from the net sale value results in the
>> "netted out" capital gain that you report on your taxes.If you instead
>> apply the commissions and fees as expenses, then they can't also be
>> used to reduce the capital gains income. The capital gain income would
>> be the difference of the gross sale less the gross basis ignoring the
>> commissions and fees and the profit or loss shows up as the difference
>> between income and expense according to the usual accounting
>> equation.The trial balance seems to have been broken before I fixed
>> bugs 774368 and 340991. I didn't know that at the time, I don't often
>> use it, but I'll take your word that until 2.6.15 it would balance out
>> even when you accounted twice for commissions and fees. The current
>> behavior is correct.Regards,John
>> Ralls_______________________________________________gnucash-user
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