How to account for a house purchase

Tony Vanson tonyvans70 at gmail.com
Sat Feb 17 20:45:09 EST 2018


Thank you all for your quick and useful advice. Cheers

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On Sun, Feb 18, 2018 at 12:53 AM, John Ralls <jralls at ceridwen.us> wrote:

> Ron,
>
> You made the right choice. Barring a price-to-market accounting
> requirement that never applies to individuals, the book value is what you
> actually paid. When you get around to selling you’ll get taxed on the
> difference between the net selling price and that purchase price.
>
> If you want to see the “funny money” of market value you can create a
> “house” security and make Assets:House contain one of them, purchased at
> the price on the contract. Then you can get updated market price estimates
> and put them in the pricedb. The supposed market value will then show up on
> the Accounts page and in various reports.
>
> Regards,
> John Ralls
>
> > On Feb 17, 2018, at 9:01 AM, Ronal B Morse <ron at morsehouse.com> wrote:
> >
> > That's what I did. I also had to set up a corresponding liability
> account for the mortgage, but that's a separate issue.
> >
> > I wasn't sure if I should use the purchase price or the appraised value
> as the value of the asset, but since I do everything else on a cash basis,
> I decided to use the cash price.  That does have some impact on net worth
> calculations, but I'll live with that.
> >
> > RBM
> >
> >
> > On 02/17/2018 07:56 AM, Robert Heller wrote:
> >> At Sat, 17 Feb 2018 21:31:54 +0700 Tony Vanson <tonyvans70 at gmail.com>
> wrote:
> >>
> >>> Hi all,
> >>> Hopefully someone can point me in the right direction on how to
> account for a house purchase in GNUCash.
> >>> I have contracted to buy a house and have paid a 10% deposit from my
> bank account, with the remainder becoming due within 2 months. I understand
> that the deposit amount is a debit against my bank account but I have no
> idea what the corresponding  double-entry should be. I assume when this
> purchase is completed it will be an asset?
> >>> Regards
> >> How about Assets:House ?
> >>
> >>>
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-- 
*Tony Vanson*

*The older I get,*
*the better I was*


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