[GNC] Deferred Income << the general case is "imputed income"

[Jediator]

I am not an accountant, so please excuse my ignorance.  I was wondering 
is it really necessary to create a separate deferred income account when 
you could just do a transaction report on your IRA account to see how 
much distribution you had in a year or a month?  -- JC

On 1/15/24 5:33 PM, Michael or Penny Novack wrote:
> On 1/15/2024 4:02 PM, R Losey wrote:
>> Thank you; this is helpful.
>>
>> I never really thought about recording Deferred Income previously 
>> because the investment people track it and let me know what has been 
>> taken out every year.  But after the discussion in this list last 
>> year, I thought it might be good to track, at least the taxable 
>> withdrawals.
>>
>> I see that Deferred Income should have been recorded, but it wasn't.  
>> Instead of using "Opening Balance" when they were set up, the amount 
>> should have been more appropriately credited to Deferred Income, right?
>
>
> The fact that the government considers the TRANSFER of assets between 
> two asset accounts (the IRA and checking) to be a taxable event even 
> though no new money coming in can be considered as special case if 
> "imputed income" and you COULD simply treat all imputed income 
> situations the same.
>
> For example --- you might have as an employee benefit employer paid 
> group term insurance and your employer might even offer options like 5 
> years salary. Now the US government considers up to $50,000 face value 
> a non-taxable benefit but the premium for coverage above that amount 
> as "imputed income". In other words, this will appear on your pay stub 
> as part of your total taxable income even though you didn't actually 
> receive that as money.
>
> Well in the big split where you enter your salary you could handle 
> that little piece using equity for the other side. As I have already 
> noted, NOT actually changing total equity to both debit and credit 
> equity by the same amount (the credit side being an income account, 
> but both income and expense accounts "really: of type equity and the 
> net of all unclosed income and expense accounts appearing with equity 
> as "retained gains (or losses)"
>
> Some of us had to deal with other "imputed income". Thus if we had a 
> "split dollar" insurance benefit* the premium for that amount of term 
> coverage would show as an "imputed income" amount.
>
> Michael D Novack
>
> * The employer buys a cash value type policy on your life, and pays 
> the premium. You get the right to name the beneficiary and the option 
> (if you leave) to either buy and keep the policy (pay the employer for 
> those premiums) or have the policy surrendered and keep the difference 
> (after several years the policy should be worth more than the sum of 
> the premiums paid in). In other words, you have a favorable "adverse 
> choice" situation <<you decide knowing your health at this later date>>
>
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