[GNC] How to record giving gift of shares

[Fred Tydeman]

I know what I need to do for tax purposes.
I do not know how to do the accounting.
I would like a report of all gifts made (FMV per asset per person) implies
need to record gifts somehow.
I would like a report of all gifts made (basis price per asset per person)
implies need to record basis somehow.
I see no need to record UnrealizedGains (unless needed to balance the
books).

I will leave original Equity:Opening balances alone and add
Equity:adjustment transactions (if needed).

On Sun, May 22, 2022 at 3:30 PM Michael or Penny Novack <
stepbystepfarm at comcast.net> wrote:

>
> > Now, I wish to give all of these shares to my son.
> > How do I record both the basis price and the fair market value (FMV)?
> > I assume that I record a sale of all the shares at the current basis
> price
> > in my account (so I have no capital gain).
> > And I record a buy of the same number of shares at that basis price in my
> > son's account (in the US, the basis price carries to the new owner).
> > How do I record the FMV of the gift?  Perhaps: Expense:GIft.
> > A gift tax return in the US needs both the basis price and the FMV of the
> > gift.
> > Do I need to record unrealized gain?
> > Do I need to adjust Equity:Opening Balances?
>
> Consult your tax advisor. Because you mention gift tax, I assume this is
> something above the amount that does not have to be reported.
>
> But I see something that should be discussed (as a general matter)
>
> "Do I need to adjust Equity:Opening Balances?
>
> SOME of us follow the rule of never changing an existing transaction, If
> adjustments need to be made, they are made with another transaction. So
> yes, if you do it THAT way (with a "journal transaction" directly to
> equity, not via an "expense") you would simply use an equity account
> (named "adjustments" ?) as opposed to touching "starting equity". Mind,
> some of us also don't have this special "starting equity". We open books
> with a transaction.
>
> Michael D Novack
>
>
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