[GNC] Fwd: Double entry directly to Equity

[Michael or Penny Novack]

> This Investopedia page (
> https://www.investopedia.com/terms/r/revaluationreserves.asp#:~:text=Revaluation%20reserve%20is%20an%20accounting,of%20the%20asset%20has%20changed
> .) might provide some insights into how to setup revaluation reserves. My
> reading of this is that the Reserve account is a contra account to the asset
> value and it is recorded against a specific Expense account to account for short
> term variations in the asset value.  Find the section on recording revaluation
> reserves a bit down the page.  Most jurisdictions don't tax unrealized gains or
> give you exemptions for unrealized losses, so you would likely want to record it
> under an Expense account category for non-deductible expenses.
>
> You should seek specific accounting advice from a qualified accountant for your
> jurisdiction and specific situation and not rely on this
>
> David Cousens

Listen to David.

This is a house. Ordinary expenses fore most repairs are non-deductible. 
But certain "improvements", while also non-deductible at the time, are 
allowed to be added to the basis, and so can reduce capital gains 
when/if the house is sold << and you might not be required to report 
these gains if buying another house for more within a certain amount of 
time >> BUT (and this is why I am not being more specific, though I know 
some of the details) I am NOT "qualified" to give such advice. Seek a 
qualified professional.

Michael D Novack