[GNC] Short-Term Capital Gains question - Entering Mutual Fund or EFT Distribution

[Stan Brown]

Apologies: I sent this to the OP rather than to the list.

I know we discussed having the list set Reply-To the list rather than
the individual, but I can't remember why that was rejected.


-------- Forwarded Message --------
Subject: Re: [GNC] Short-Term Capital Gains question - Entering Mutual
Fund or EFT Distribution
Date: Fri, 21 Jan 2022 16:06:36 -0800
From: Stan Brown <the_stan_brown at fastmail.fm>
To: Art Chimes <artsonline at gmail.com>

On 2022-01-21 10:42, Art Chimes wrote:

> This confuses many people because for tax purposes the STCG amounts are
> lumped in with dividends on Schedule B, as opposed to Schedule D,
> where LTCG (frequently referred to as just plain "capital gains") are reported.
> There may be exceptions; I don't know.
> 
> Since STCG are combined with dividends at tax-reporting time, is
> there any need to use a STCG-only Income account in Gnucash, or can
> one safely put dividends and short-term capital gains in the same
> "dividend" income account.

My view is this: accounting for short-term capital gains, long-term
capital gains, and dividends separately doesn't take much time, and if
ever I do need the separate totals they will be much easier to find.

Who knows? in a future tax year the tax treatment of dividends and
short-term capital gains may diverge. And then I'll be very glad I was
accounting for them separately.

-- 
Stan Brown
Tehachapi, CA, USA
https://BrownMath.com