[GNC] Recommended Method of Entry for IRA Distributions

[David T.]

Two separate entries. In my mind, this would best be put in one transaction, to make the association obvious. 

CR - Assets: IRA $1000
DB - Assets: Checking $1000
DB - Income: Deferred Income $1000
CR - Income: IRA Distribution $1000 *

* Income: IRA Distribution is used to document the distribution for tax purposes.

⁣David T. ​

On Jan 13, 2023, 7:21 AM, at 7:21 AM, R Losey <rlosey at gmail.com> wrote:
>Thanks for all of the information... however, getting back to the
>original
>question, I'm not sure how to record IRA taxable distributions. I
>thought I
>was doing it, but I am apparently not.
>
>Let me write through a couple of cases.  In the first one, I'm selling
>$1000 worth (10 shares) of security A and having it go directly to my
>checking account with no income tax withholding. (some of these may be
>USA-centric terms; I apologize for that).
>
>If I can create a "Sell" transaction that sells 10 shares at $1000; the
>other entry would be to increase my taxable distribution category by
>$1000.
>But what next? My checking account doesn't have the $1000 increase, but
>then what is the "other" category to use for that transaction??
>
>I looked at my data, and what I've been doing is that the other side of
>the
>Sell transaction is a deposit to my bank account, but this fails
>because
>there is no record of a taxable distribution.
>
>
>On Thu, Jan 12, 2023 at 2:42 PM Michael or Penny Novack <
>stepbystepfarm at comcast.net> wrote:
>
>> On 1/12/2023 12:41 PM, R Losey wrote:
>> > Thanks; I know the information is out there, but intuitively, it
>doesn't
>> > make sense to me that depositing funds to my bank account is a
>"debit"
>> > transaction to the bank. It comes from the concept of credit being
>"added
>> > to" and debit being "substracted from", I suppose.
>> >
>> > Is the "Debit on the left" and "Credit on the right" true in
>general
>> > accounting, or just GnuCash?
>>
>> a) Double entry bookkeeping goes back a long way, long enough that
>Latin
>> still in use for communications among the educated in Europe. Think
>of
>> "debit" and "credit" not in terms of plus and minus (before European
>> math had negative numbers) but as "he owes"(me) and "he trusts" (me).
>In
>> other words  he owes me that amount and he trusts me for that amount
>(I
>> owe him)
>>
>>     Now look again at the bank account.In YOUR books a debit (the
>bank
>> owes you this money) and in the bank's book a credit (the bank owes
>you
>> this money)
>>
>> b) Debit on the left and credit on the right. In the old days ledger
>> pages had two sides, one side for the debits and the other for the
>> credits (and no balance column). Perhaps within my lifetime it became
>> more common to use three column paper with debit and credit
>transactions
>> with one date, check number, description, and journal reference
>column
>> then a left for debit, a right (middle) for credit, and a balance. o
>a
>> running balance was kept << finding the balance was a process in the
>old
>> days before that >>
>>
>> NOTICE -- so far pen and ink on paper, and gnucash is simply
>modelling that
>>
>> Michael D Novack
>>
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>
>
>-- 
>_________________________________
>Richard Losey
>rlosey at gmail.com
>Micah 6:8
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