[GNC] Gnucash-created "closing" entries

[David Cousens]

Stan, Mike

Australia has the similar provisions with your primary residence being
capital gains exempt so even realized gains are not taxable income in our
case. There are some restictions, e.g. if you sell within 12 months or have
a pattern of selling and purchasing which indicates conducting a property
investment business. Capital gains taxes only apply for realized gains and
losses on securities and investments.

I have dealt with that not with a separate set of books but by using
separate sub accounts for assets subject to capital gains tax and those that
are not with corresponding taxable and non-taxable sections in my income
accounts and expense accounts where necessary. I close those to
corresponding subaccounts of Equity:retained earnings so that I have the
required amounts for doing the appropriate tax calculations available from
the balance sheet. You can also customize the balance sheet and other
reports, to produce custom reports giving a tax specific version of the
reports as required.

If the tax status of the property or investment changes e.g. a previous
investment property becomes a principal residence 
 and you sell the previous principal residence on retirement, you can just
shift it between taxable non-taxable categories at the data of the change.
(not shifting the asset account, just the asset value to a new account  in
the appropriate sub account).

We also have a fringe benefits tax payable by the employer on such
additional benefits not taxable in the hands of the employee but the
employee also has to report such benefits on their tax return. Our tax
system is a little simpler as our states ceded the right to collect certain
taxes to our federal government in return for imposition of a GST with a tax
sharing system with the states so there are no state taxes collectable from
employees ( income tax was informally ceded to the federal government at
federation in return for specific purpose grant allocations from income tax
which are largely population based). Employers however are still subject to
some taxes at the state level.

David Cousens



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David Cousens
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