[GNC] Tax Accounting for Trust Income Received in Following Fiscal Year

flywire flywire0 at gmail.com
Thu Aug 11 09:06:13 EDT 2022


It's tax time again and I'm wondering if I can improve on the process I
described in
https://lists.gnucash.org/pipermail/gnucash-user/2021-August/097424.html

It works and keeps my accountant happy but it just doesn't seem to sit well
with double-entry accounting to just ignore a few accounts at tax time and
slip in a funny-money cheat sheet for ETF (Mutual Fund?) investments. I'd
welcome any suggestions for a better way of doing it.

Attached is an ETF statement. The total of each of the 10 Tax codes in the
top section for all ETFs is reported in the attached guide on p4.

The Cash distributions are on the bottom left and the Attribution is on the
bottom right don't match. I understand the issue is summarising different
tax treatments for Dividends, Franking credits, Realised capital gains,
Interest, and Foreign Income categories. I'd prefer to enter what is
relevant into GnuCash but I don't understand the accounting. I also
understand there are different ways of accounting for tax but any guidance
would be welcome.

I don't want to get into the detail of setting up an investment portfolio
as explained in the guide and I can't see that it addresses this issue. I'd
be happy to revalue the few funds at the end of each tax year (with
guidance) for the balance sheet.

This should feed into the financial statements for the trust which owns the
ETF units and distributes the proceeds each year. The Cash distribution has
been distributed with pro-rata funny-money reported.

[image: VAS-annual-tax-statement-2018.png]

>
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