[GNC] Advanced Portfolio Report - Brokerage Fees

[Michael or Penny Novack]

> 2. Record the tax split in the sell transaction directing it to a
> transitory asset account and then recording a separate tax transaction
> in the transitory account directing it to the tax expense account.

No, it not YET a "tax expense" but an asset. Maybe confused because both 
debit?

Only when you file your taxes determining the total tax you owe can you 
tell what it will become. If the total amount held in all of the "tax 
withheld" amounts is greater than the tax owed, part of that will become 
"tax expense" and some refunded to you. If you have severe losses later 
in the year maybe you get all of this back.

Think of that money as being held in escrow by the government for the 
purpose of paying taxes that MIGHT be due. In other words, they have 
that much in hand against what you might end up owing and guaranteed not 
having to try to collect it from you later at tax filing/tax due time.


Michael D Novack