[GNC] Representing stock grants/opening balances in GnuCash

[David Cousens]

There are a few considerations depending on the specific arrangement and the
federal and state tax laws that apply. See
https://www.wikihow.com/Account-for-Stock-Based-Compensation#Making-Journal-Entries,
specifically the section on employee recording of transactions

Generally you are likely to be liable to pay Income tax on the difference
between the market price of the stock and any price you pay to your employer
for the stock if you do not hold the stock for the period specified by the
relevant state or federal legislation or the stock option plan, which
applies which is usually 1-2 years. Income tax will be due at your marginal
tax rate if you sell within this period.

When you sell the stock you will be liable for capital gains tax on the
difference between the market value  of the stock when you received it and
market value at the time of sale.

I would use an Income account to record receiving the value of the stock. It
would be wise to have a special category account to separate it either from
income which is taxable and any non-taxable income as it is conditionally
taxable on sale within the qualification period. This income account may
need to be carried forward until the qualification period expires. If the
stock is sold within the qualification period then it is included in the
return for the year of sale as taxable income. 

Other wise the recording of the stock is as for any stock subject to capital
gains.you will need to to know the price at acquisition and the price at
sale.

The above is general and not specific to your jurisdiction.. Yyou should
consult a local accountant for specific advice.



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David Cousens
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