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

[Michael or Penny Novack]

On 1/16/2024 1:42 PM, Adrien Monteleone wrote:
> I'm thinking of a case where someone starts using GnuCash either at 
> the point they start taking disbursements or after. I'm about to help 
> a family member in that exact situation.
>
> While Deferred Income wasn't tracked along the way, I'll set up the 
> account with the present total as an opening balance and have them 
> transfer against that each distribution. 

That's a reasonable solution.

I'd do it under equity. You can create for them there an account with a 
name like "deferred income". Presumably when you started the books for 
them, the other side of the transaction(*) entering the IRA balance as 
an asset was equity. All you would be doing now would be to "partition" 
equity transferring the remaining IRA balance form undifferentiated 
equity to ":deferred income:.

Then as distributions are taken, the debits would be bank account and 
deferred income and the credits the IRA balance and income 
(current/taxable income)

While this isn't necessary, could just debit equity, if you have the 
deferred income separated out it SHOWS. I'd certainly want my balance 
sheet to show that some of my net worth has a tax liability associated 
with it.

Michael D Novack

* If you used the "starting balance" tool no explicit transaction.