[GNC] Capital Gains

[David Carlson]

IANA as well, but I think that because it is possible to record negative
gains under Income, I find that easier than creating companion loss
accounts for income every income account.  It is a user preference in my
opinion.

On Tue, Mar 2, 2021 at 6:11 PM gnu Gord <gnucashgord at gmail.com> wrote:

> Thanks for the explanation.
> I was trying to follow the example in Chapter 11 of the GnuCash
> Documentation that seems to indicate the unrealized capital gains are
> recorded in Assets:Fixed Assets... and I would record a transfer from
> Income:Unrealized Gains...
> However, I didn't understand how to record a loss. Would I make an entry in
> the Income:Unrealized Gains as a negative amount or create an entry in an
> Expenses:Unrealized Gains account? With a similar approach for realized
> capital gains?
>
> This is all just for my own personal records so, I guess, I could record it
> anyway I like but I'd like to follow some sort of standard so I don't go
> too far astray! 😉
>
> Thanks again.
>
> On Tue, Mar 2, 2021 at 3:39 PM David Cousens <davidcousens at bigpond.com>
> wrote:
>
> > gnuGord, David,
> >
> > There is nothing in accounting practice per se to stop you tracking
> > unrealized gains or losses for your own purposes, e.g. management of your
> > assets.
> >
> > It is just that they are not usually recognized for purposes like
> taxation
> > and financial reporting as income or expenses for a business until they
> > have
> > actually been incurred, usually on the sale of the asset/stock
> > involved.There are some cases in some jurisdictions where they are
> recorded
> > for financial reporting in addition to realized gains and losses but this
> > is
> > not common. Capital gains taxes do not normally apply to unrealized gains
> > or
> > losses. The rules on this vary between jurisdictions and this is a case
> > where local professioanl accounting advice is needed.
> >
> > If you are going to track them, you would normally do so against a
> > sub-account of Equity labelled as "Unrealized Gains or Losses" (which may
> > or
> > may not in turn have sub-accounts for specific assets or asset classes
> > depending on the detail you require). It would be also a good practice to
> > have a sub-account totalling into the asset account for the particular
> > asset
> > to record unrealized gains and losses so that you can easily
> differentiate
> > realized gains and losses from unrealized gains and losses in your
> accounts
> > where you are using them to formulate input for taxation and financial
> > reporting .
> >
> > The sale transaction which zeros the asset value and debits your bank or
> > brokerage account then includes two additional splits which zero out  the
> > unrealized gains and losses balances in the asset sub account and the
> > Unrealized Gains and Losses account(s) in Equity.
> >
> > David Cousens
> >
> >
> >
> > -----
> > David Cousens
> > --
> > Sent from:
> http://gnucash.1415818.n4.nabble.com/GnuCash-User-f1415819.html
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-- 
David Carlson