[GNC] Example of accounts for a personal residence with entries for US tax basis

[Michael or Penny Novack]

If you need, you can split the expenditure between the Asset (affecting 
the basis) and the Expense accounts.


The purpose of accounting is INFORMATION. That is what my "PS" was all 
about. Thinking that you have to split the expenditure is an illusion. 
You might want/need all of part of that expenditure considered BOTH as a 
(current) expense and as an increase in basis (for future capital gains 
calculation).This is unlike the situation for a business, as personal 
home expenses are not expenses in the tax sense. So "double counting" is 
not an issue.

This is not unlike the situation for a non-profit paying an expense that 
meets the qualifications of one of the restricted funds. You 
transaction(s) have to BOTH record the expenditure and expense AND 
release that amount from restriction. Exactly what that latter part 
looks like depends on how the restricted funds are accounted for.

Michael D Novack