[GNC] Recommended Method of Entry for IRA Distributions

[R Losey]

I suppose a way to handle the "Income but not really income" would be ao
follows (see what people think about this):

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

This way, the income change is zero, but I can still track the "Income" for
tax purposes by looking at the debits for the year.

What do ye readers think of that?

Richard

On Thu, Jan 12, 2023 at 11:14 PM Stan Brown <the_stan_brown at fastmail.fm>
wrote:

>
> On 2023-01-12 20:55, David T. via gnucash-user wrote:
> > 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.
>
> My only problem with that is that a distribution from an IRS is not
> income, any more that the currency you receive when you cash a check is
> income.
>
> It's simply moving a portion of your assets from one bucket to another.
> And it seems very strange to me that the one event should be recorded in
> a four-split transaction.
>
> Stan Brown
> Tehachapi, CA, USA
> https://BrownMath.com
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-- 
_________________________________
Richard Losey
rlosey at gmail.com
Micah 6:8