[GNC] IRA/401K income detection

[D.]

Adrien, 

Overall, I think you're right, but I believe the tax features you're referring to are used to calculate taxes for a business? The issue with deferred income-- and this has been true for as long as I can remember-- is that when Joe Retiree takes money from their IRA, the IRS considers it income, and taxes it accordingly. But when Joe tries to enter the transfer from their IRA to their checking account in GnuCash,  it doesn't get treated as income, and there doesn't appear to Joe to be a straightforward way in GnuCash to make it into income that they can track for taxes. That is a decidedly different tax issue than the one you've mentioned, IMHO. 

David T.


-------- Original Message --------
From: Adrien Monteleone <adrien.monteleone at lusfiber.net>
Sent: Wed Mar 16 13:09:10 EDT 2022
To: gnucash-user at lists.gnucash.org
Subject: Re: [GNC] IRA/401K income detection

I could be missing something, but I thought that was already covered by 
one of the answers. Also, I'm pretty sure the proper place to record and 
track that is in an Asset account, not Equity.

As for the transactions, if you need to do virtual 'extra tracking' 
beyond just the physical withdrawal, you can do that all in one 
transaction rather than 2 or more.

A transaction can have more than 2 splits. So you'll have your real 
splits modeling the real world movement of funds, then you can have 
additional pair(s) of splits that handle 'tax due' type of tracking.

Finally, there are Tax Features built in. Have you investigated them and 
do they not address the 'tax due' tracking you are looking for? (you may 
not need additional accounts and virtual tracking transactions, just run 
a report)

Sorry I can't help more specifically. I don't use GnuCash for such 
purposes. Plenty on this list do however. Someone is sure to be able to 
offer a step by step at some point.

Regards,
Adrien

On 3/16/22 9:48 AM, David G. Pickett via gnucash-user wrote:
> OK, not anything like an accountant, so my books have just asset, liability, income, expense.  Equity might be a better place for the IRA/401K, since it is an asset with a varying value and an attached tax liability TBD.  So, how should I have set up such 100% pretax deferred income accounts to capture the income when money is transferred out, preferably without two transactions (talk about your double entry!)?

_______________________________________________
gnucash-user mailing list
gnucash-user at gnucash.org
To update your subscription preferences or to unsubscribe:
https://lists.gnucash.org/mailman/listinfo/gnucash-user
If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information.
-----
Please remember to CC this list on all your replies.
You can do this by using Reply-To-List or Reply-All.