[GNC] How to treat a sale which involves more accounts?
Paras Desai
DesaiParas at outlook.com
Wed Sep 25 23:26:25 EDT 2024
This looks perfectly as it should be.
Of course, following split transaction can be posted
Sale with profit: selling at 3500
Debit - cash or bank - 3500
Credit - asset - 2300
Credit -gain on sale : 1200
Sale with loss : selling at 2000
Debit - cash or bank - 2000
Credit - asset - 2300
Debit - loss on sale - 300
Paras
Hi Folks,
Pardon the interruption; I'm breaking into the middle of this conversation, so please forgive me if I misunderstand or repeat something that has already been discussed.
I believe the discussion is recording the acquisition of musical instruments and the occasional sale and how to account for that. I recommend an asset account, "Instruments", with a sub account for each instrument, which records the book value of each instrument. Remember the book value is the cost to acquire and *deploy* an asset, which would also include maintenance, so I would enter splits for "repairs", or "tuning", or "travel" anything else you might do that costs you. When it comes time to sell, you need to write off that asset and calculate the gain or loss on sale and apply that to "income".
Purchase:
Instruments:Flugelhorn $2,000
Instruments:Expense:Travel $150
Instruments:Expense:Repair $50
Instruments:Expense:Maintentance $25
Visa Card $2,225
Several years later, add another split
Instruments:Expense:Tune-upTravel $75
Cash $75
The above activity is one transaction, that added a split as necessary, and maintained the book value of the instrument, which would now be $2,225 + $75 = $2,300
This is how you would record the sale for $3,500
Cash $3,500
Flugelhorn $2,300 (Write off the asset, you no longer own it)
Gain on Sale $1,200 (credit to income, This could, of course, be a "Loss on Sale" which would debit income.
If different instruments are taxed differently, then that could appear here, as well,
but tax is not typically an expense)
I hope I understood the problem and didn't just make a fool of myself answering a question nobody is asking.
--
Chris.
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Today's Topics:
1. Re: How to treat a sale which involves more accounts?
(Chris Miller)
2. Re: How to treat a sale which involves more accounts? (R Losey)
3. Re: Owning stocks which are not publicly quoted - which
account type suits better? (R Losey)
4. Re: Owning stocks which are not publicly quoted - which
account type suits better? (Christopher Lam)
5. Reconcile accounts out of monthly sequence (Tony Vanson)
6. Re: Reconcile accounts out of monthly sequence (John Ralls)
7. Re: How to treat a sale which involves more accounts?
(Boniforti Flavio)
8. Re: Owning stocks which are not publicly quoted - which
account type suits better? (Boniforti Flavio)
9. Re: Owning stocks which are not publicly quoted - which
account type suits better? (Boniforti Flavio)
----------------------------------------------------------------------
Message: 1
Date: Tue, 24 Sep 2024 16:35:15 -0700 (PDT)
From: Chris Miller <cjm at tryx.org<mailto:cjm at tryx.org>>
To: gnucash-user <gnucash-user at gnucash.org<mailto:gnucash-user at gnucash.org>>
Subject: Re: [GNC] How to treat a sale which involves more accounts?
Message-ID: <1313313036.5053.1727220915679.JavaMail.zimbra at tryx.org<mailto:1313313036.5053.1727220915679.JavaMail.zimbra at tryx.org>>
Content-Type: text/plain; charset=utf-8
Hi Folks,
Pardon the interruption; I'm breaking into the middle of this conversation, so please forgive me if I misunderstand or repeat something that has already been discussed.
I believe the discussion is recording the acquisition of musical instruments and the occasional sale and how to account for that. I recommend an asset account, "Instruments", with a sub account for each instrument, which records the book value of each instrument. Remember the book value is the cost to acquire and *deploy* an asset, which would also include maintenance, so I would enter splits for "repairs", or "tuning", or "travel" anything else you might do that costs you. When it comes time to sell, you need to write off that asset and calculate the gain or loss on sale and apply that to "income".
Purchase:
Instruments:Flugelhorn $2,000
Instruments:Expense:Travel $150
Instruments:Expense:Repair $50
Instruments:Expense:Maintentance $25
Visa Card $2,225
Several years later, add another split
Instruments:Expense:Tune-upTravel $75
Cash $75
The above activity is one transaction, that added a split as necessary, and maintained the book value of the instrument, which would now be $2,225 + $75 = $2,300
This is how you would record the sale for $3,500
Cash $3,500
Flugelhorn $2,300 (Write off the asset, you no longer own it)
Gain on Sale $1,200 (credit to income, This could, of course, be a "Loss on Sale" which would debit income.
If different instruments are taxed differently, then that could appear here, as well,
but tax is not typically an expense)
I hope I understood the problem and didn't just make a fool of myself answering a question nobody is asking.
--
Chris.
------------------------------
Message: 2
Date: Tue, 24 Sep 2024 19:11:09 -0500
From: R Losey <rlosey at gmail.com<mailto:rlosey at gmail.com>>
To: Boniforti Flavio <boniforti.f at gmail.com<mailto:boniforti.f at gmail.com>>
Cc: David Cousens <davidcousens49 at gmail.com<mailto:davidcousens49 at gmail.com>>, gnucash-user at gnucash.org<mailto:gnucash-user at gnucash.org>
Subject: Re: [GNC] How to treat a sale which involves more accounts?
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That looks right to me.
On Tue, Sep 24, 2024 at 3:28?PM Boniforti Flavio <boniforti.f at gmail.com<mailto:boniforti.f at gmail.com>>
wrote:
Hi David.
In fact I don't buy instruments with the goal of making profit out of them.
I collect and play them too. In fact, for this situation I would simply
account for both purchase and sale as you described.
So there's no tax implication whatsoever in my case.
But then...
I look at my collection of instruments as an asset, not as an expense. I do
own a bunch of vintage instruments, which have the value corresponding to
what I've paid for them. So if I consider this collection to be an asset,
then the suggested accounts you proposed won't work anymore (please correct
me if I'm wrong).
I was thinking more of something like this:
PURCHASE:
"Asset:Bank Account" decrease
"Asset:Musical Instruments Collection" increase
It becomes for me more difficult to understand how a sale would have to be
registered, as it not only increases my bank account, but it also decreases
the musical instruments collection - but only of the value I paid for it
when I bought it. Given the fact that many items will increase their value
over time, there might be a surplus. The easy example is: I bought item A
in 2002 for 1000 and I sell it now in 2024 for 2000 --> my collection
account would decrease by 1000, my bank account would increase by 2000 but
where do I put the surplus? I thought of something like this:
SALE:
"Asset:Bank Account" increase +2000
"Asset:Musical Instrument Collection" decrease -1000
"Income:Musical Instrument Sales" increase +1000
If the above is correct and feasible, how would I enter it in GC?
F.
https://www.instagram.com/boniforti_music
https://soundcloud.com/boniforti_music
https://bonny-j.bandcamp.com
Am Di., 24. Sept. 2024 um 06:48 Uhr schrieb David Cousens <
davidcousens49 at gmail.com<mailto:davidcousens49 at gmail.com>>:
Flavio,
If you were just buying musical instruments with no intention of earning
income with them or in the future, you would simply record the purchase
transaction as
Asset :Bank account credit xxx
Expenses: Musical Instruments debit xxx
and any subsequent sale is
Asset:bank debit yyy
Income:Musical Instrument Sales credit yyy
and you may or may not be required to pay tax on that income depending on
your jurisdictions tax rules (in most cases probably not if below some
legislated threshold for business activity), and that would be the end of
it. In most jurisdictions you will also likely be below the threshold
where any such activities are treated on a cash accounting basis, i.e.
they
are recorded at the point where the money changes hands.
When you purchase instruments where the intention is to either resell
them
or otherwise use them to generate income usually on some form of fairly
regular basis, then when they are purchased, they are an asset to your
enterprise, whether that is simply personal or a business, so the
purchase
becomes an asset rather than an expense. For business usually where
turnover is above a specified threshold set by taxation legislation, you
will be required to record transactions on an accrual timing basis and
for
purchases, this is generally at the time when the agreement to make a
specific purchase is entered into, not when the actual; cash changes
hands. Similarly on sales, when you agree to sell an item, the receipt
of
income is recorded at the time you agree to do so not necessarily when
you
actually receive the funds.
There is another accounting principle which requires that the recording
of
expense of items sold should be matched in timing to the recording of the
income. recording purchases as an asset class inventory meets the first
requirement and recording it as an expense against the Cost of Goods Sold
at the timing of the sale meets the second. The Cost of Goods Sold title
just arises because most businesses will sell many different types of
items. If the expense were recorded at the time of purchase, then the
calculation of profit is thrown out of whack and if you do that your
taxation authorities tend to start accusing you of trying to avoid tax.
Such Inventory and CoGS accounts can have subaccounts for specific items
or classes of items where knowing that information is material to the
management of the business. There are also sales taxes, VAT, GST type
taxes to deal with as well in some jurisdictions.
On Mon, 2024-09-23 at 17:26 +0200, Boniforti Flavio wrote:
Hi David.
Thanks for correcting me.
I have a few more questions:
As of today, I've got "Assets:Current Assets:Music Equipment CHF" and
"Assets:Current Assets:Music Equipment EUR" which I consider my inventory
accounts. There I entered the price of a musical instrument which I
bought.
I also do have the account "Income:Music Equipment Sales CHF" and
"Income:Music Equipment Sales EUR".
I'm not understanding the use of the "Expenses:Cost of goods sold"
account
- can you explain?
Thanks,
Flavio.
https://www.instagram.com/boniforti_music
https://soundcloud.com/boniforti_music
https://bonny-j.bandcamp.com
Am Fr., 20. Sept. 2024 um 00:58 Uhr schrieb David Cousens <
davidcousens49 at gmail.com<mailto:davidcousens49 at gmail.com>>:
Flavio,
I would do the following when selling something for 120 which I bought
for 100:
1. increase the checking account by 120;
2. increase the "Income:Sales" account by 120;
3. increase the "Inventory:Music Equipment Sales" account by 120;
4. decrease the "Expenses:Cost of Goods Sold" account by 100.
These steps are not correct . Your inventory account records the value
(at
cost) of the items you are holding so the entry on sale o an item should
equal the cost at purchaser so you your transaction to record it should
be:
1 . increase (debit) the checking account by 120
2. increase (credit) the Income:Sales account by 120
3. decrease (credit) the Inventory:Music Equipment Sales account by 100
4. increase (debit) the Expenses: Cost of Goods Sold account by 100
The Inventory:Music Equipment Sales account is what is known in
accounting terms as a contra account to the Music Equipment Purchases
which is why it is credited to decrease the balance of Inventory (rather
than debit as is usual to increase the balance of an asset account). I
have added the usual accounting column headings in brackets. Of the two
columns with entries in themthe Debit column is always the first and the
Credit column is always the second followed by the Balance colum last.
Note that in any transaction the sums of all the debit and all the
credit
entries have to be equal, which was not the case for your proposed
entries.
Cheers
David
On Thu, 2024-09-19 at 21:52 +0200, Boniforti Flavio wrote:
Hi David and David :-)
Thanks for your replies.
I'm not running any business at all. I am a musician who also collects
(vintage) music instruments. As I also do play them, it happens a couple
of
times a year that I'm not interested anymore in keeping one or the other
instrument. For this reason, I sell a couple of items a year and given
the
fact that the majority of my items are "vintage" ones, prices are always
fluctuating. So I want to keep track of how much I've gained (or lost)
when
selling an item.
Given the above, I think that if I would only use a single "Music
equipment" account, I could not see how much I made (plus or minus) while
selling some items - right? This is the reason which led me to think
about setting up some accounts to "correctly" keep track of this all.
Using this:
1. Debit the Checking account for the total amount of the purchase paid
by
the customer;
2. Credit the Income:Sales account by the total amount of the purchase;
3. Credit the Inventory: MusicEquipment Sales account by the amount of
the
cost of the items sold;
4. Debit the Expenses:Cost of Goods Sold account by the amount of the
cost of the items sold.
I would do the following when selling something for 120 which I bought
for
100:
1. increase the checking account by 120;
2. increase the "Income:Sales" account by 120;
3. increase the "Inventory:Music Equipment Sales" account by 120;
4. decrease the "Expenses:Cost of Goods Sold" account by 100.
(of course previoulsy I'd had increased the "Inventory:Music Equipment
Purchases" and decreased my "Assets:Checking Account" by 100).
Am I correct with the above?
TIA,
F.
https://www.instagram.com/boniforti_music
https://soundcloud.com/boniforti_music
https://bonny-j.bandcamp.com
Am Do., 19. Sept. 2024 um 03:52 Uhr schrieb David Cousens <
davidcousens49 at gmail.com<mailto:davidcousens49 at gmail.com>>:
Flavio,
Why would you need a Music equipment sold account in the first place?
If your business is making music then:
when you buy equipment you credit your checking account and debit the
Music Equipment asset account by the amount of the purchase;
when you sell the equipment you debit your checking account and credit
the music equipment account.
In this case the equipment is not held for the purpose of selling it at
a profit. You may however be subject to capital gains type taxes if
they apply in your jurisdiction and the value of the equipment sold
exceeds the thresholds for such taxes.
The situation may however be slightly different if your business is
actually retailing music equipment. In this case the Music Equipment
account is essentially an Inventory account - still an asset account.
You would normally in these circumstances set up an Inventory asset
account which is a placeholder with two sub accounts Inventory:Music
Equipment Purchases and Inventory:Music Equipment Sales. Your Income
top level account will also need a subaccount Income:Sales and your
Expenses top level acoount will need a sub account Expenses:Cost of
Goods Sold (GoGS)
The basic procedure is the same for purchases of equipment, credit the
checking account and debit the Music Equipment Purchases sub account.
When you make a sale only the difference between the cost of the
equipment sold and the selling price is your income ( neglecting any
sales tax issues which may also apply) so the following will be the
basic procedure:
Debit the Checking account for the total amount of the purchase paid by
the customer;
Credit the Income:Sales account by the total amount of the purchase;
Credit the Inventory: MusicEquipment Sales account by the amount of the
cost of the items sold;
Debit the Expenses:Cost of Goods Sold account by the amount of the
cosdt of the items sold.
Your profit on the transaction is recorde by the difference between the
Income:Sales account and the Expenses:Cost of Goods Sold account
entries.
Dealing with any applicable taxes will add additional steps to the
accounting as will making allowances returns of purchases to
suppliersof faulty equipment and returns of equipment to you with
faults by customers. You should consult an accountant and consumer
legislation in your jurisdiction in how to deal with these.
David Cousens
On Wed, 2024-09-18 at 23:37 +0200, Boniforti Flavio wrote:
Hi.
Still very noob here, so bear with me please.
I've got the following accounts (among others):
Music equipment
Music equipment sold
Checking account
When I buy music equipment, I take the money from my checking account
and
add it to the "music equipment" account.
When I sell music equipment, how should I register it? I thought that
the
account "music equipment" would decrease by the sold value, the
checking
account would increase by the same amount... but what happens with
the
"Music equipment sold" account?
Or am I wrong in separating "music equipment" from "music equipment
sold"?
Thanks,
F.
https://www.instagram.com/boniforti_music
https://soundcloud.com/boniforti_music
https://bonny-j.bandcamp.com
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_________________________________
Richard Losey
rlosey at gmail.com<mailto:rlosey at gmail.com>
Micah 6:8
------------------------------
Message: 3
Date: Tue, 24 Sep 2024 19:23:04 -0500
From: R Losey <rlosey at gmail.com<mailto:rlosey at gmail.com>>
To: Boniforti Flavio <boniforti.f at gmail.com<mailto:boniforti.f at gmail.com>>
Cc: gnucash-user at gnucash.org<mailto:gnucash-user at gnucash.org>
Subject: Re: [GNC] Owning stocks which are not publicly quoted - which
account type suits better?
Message-ID:
<CAGQ=FyjQA=sDuyOMvR=O=iB=P8DujmyKfT7QcTm2n0zhy+UO_A at mail.gmail.com<mailto:CAGQ=FyjQA=sDuyOMvR=O=iB=P8DujmyKfT7QcTm2n0zhy+UO_A at mail.gmail.com>>
Content-Type: text/plain; charset="UTF-8"
I think it could still be a stock - you'll just need to make sure the
settings are correct -- and, of course, you cannot update the price online.
Dividends fall into three categories that I can think of (and I'm using
what I need for the US; not sure about your situation)
Taxable dividend income (most common)
Non-taxable dividend income (some fund's dividends are not taxed in the US)
Deferred income from dividends (dividends paid on IRAs, for example - for
traditional IRAs, the money is taken when taken out; for Roth IRAs, they
are not taxed)
I'm not a financial expert, so I may have missed something.
On Tue, Sep 24, 2024 at 3:57?PM Boniforti Flavio <boniforti.f at gmail.com<mailto:boniforti.f at gmail.com>>
wrote:
Hi.
I'm partner and own stocks of the company I work for. This company is not
on the public market.
The stock value is defined once per year and dividends are then paid out.
Do I understand correctly, that I don't have to set up a "stock" type
account for this, as those stocks are not publicly traded?
And the dividends are an account of type "income" - right?
Thanks,
F.
https://www.instagram.com/boniforti_music
https://soundcloud.com/boniforti_music
https://bonny-j.bandcamp.com
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_________________________________
Richard Losey
rlosey at gmail.com<mailto:rlosey at gmail.com>
Micah 6:8
------------------------------
Message: 4
Date: Wed, 25 Sep 2024 08:25:46 +0800
From: Christopher Lam <christopher.lck at gmail.com<mailto:christopher.lck at gmail.com>>
To: Boniforti Flavio <boniforti.f at gmail.com<mailto:boniforti.f at gmail.com>>
Cc: gnucash-user at gnucash.org<mailto:gnucash-user at gnucash.org>
Subject: Re: [GNC] Owning stocks which are not publicly quoted - which
account type suits better?
Message-ID:
<CAKVAZZL-DhROjACwrN7Cfk-1oRni8fZsiOU93T1OV9-Fw6dBXw at mail.gmail.com<mailto:CAKVAZZL-DhROjACwrN7Cfk-1oRni8fZsiOU93T1OV9-Fw6dBXw at mail.gmail.com>>
Content-Type: text/plain; charset="UTF-8"
Interesting question... as someone who's been intimately involved in some
gnucash code improvements, I have no idea how to account for "my own
company stock share".
Could anyone more qualified (and with knowledge of double-entry as it
applies to personal *and* own company (cf publicly traded company as
investment vehicle) books?
How would the usual company shares activity (eg stock split, dividend,
return of capital, notional distribution, etc) be recorded as?
On Wed, 25 Sept 2024 at 04:57, Boniforti Flavio <boniforti.f at gmail.com<mailto:boniforti.f at gmail.com>>
wrote:
Hi.
I'm partner and own stocks of the company I work for. This company is not
on the public market.
The stock value is defined once per year and dividends are then paid out.
Do I understand correctly, that I don't have to set up a "stock" type
account for this, as those stocks are not publicly traded?
And the dividends are an account of type "income" - right?
Thanks,
F.
https://www.instagram.com/boniforti_music
https://soundcloud.com/boniforti_music
https://bonny-j.bandcamp.com
_______________________________________________
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Message: 5
Date: Wed, 25 Sep 2024 10:32:48 +0700
From: Tony Vanson <tonyvans70 at gmail.com<mailto:tonyvans70 at gmail.com>>
To: gnucash-user <gnucash-user at gnucash.org<mailto:gnucash-user at gnucash.org>>
Subject: [GNC] Reconcile accounts out of monthly sequence
Message-ID:
<CACnjAudTogbGCzVon5RcpKDmWZeQbYhXVWgZU7F2ymiDY4DqzQ at mail.gmail.com<mailto:CACnjAudTogbGCzVon5RcpKDmWZeQbYhXVWgZU7F2ymiDY4DqzQ at mail.gmail.com>>
Content-Type: text/plain; charset="UTF-8"
Hi all,
Using Windows 11 and GnuCash 5.8
Is it possible to reconcile accounts ad-hoc, i.e July before February etc,
without creating chaos with starting and ending balances
--
*Tony Vanson*
*The older I get,*
*the better I was*
------------------------------
Message: 6
Date: Tue, 24 Sep 2024 21:35:47 -0700
From: John Ralls <jralls at ceridwen.us<mailto:jralls at ceridwen.us>>
To: Tony Vanson <tonyvans70 at gmail.com<mailto:tonyvans70 at gmail.com>>
Cc: gnucash-user <gnucash-user at gnucash.org<mailto:gnucash-user at gnucash.org>>
Subject: Re: [GNC] Reconcile accounts out of monthly sequence
Message-ID: <07950E10-07D8-4B74-B728-815D3E182DD7 at ceridwen.us<mailto:07950E10-07D8-4B74-B728-815D3E182DD7 at ceridwen.us>>
Content-Type: text/plain; charset=us-ascii
No. The only way to get the reconciled balance correct is to reconcile in sequence.
Regards,
John Ralls
On Sep 24, 2024, at 20:32, Tony Vanson <tonyvans70 at gmail.com<mailto:tonyvans70 at gmail.com>> wrote:
Hi all,
Using Windows 11 and GnuCash 5.8
Is it possible to reconcile accounts ad-hoc, i.e July before February etc,
without creating chaos with starting and ending balances
--
*Tony Vanson*
*The older I get,*
*the better I was*
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Message: 7
Date: Wed, 25 Sep 2024 08:11:51 +0200
From: Boniforti Flavio <boniforti.f at gmail.com<mailto:boniforti.f at gmail.com>>
To: Chris Miller <cjm at tryx.org<mailto:cjm at tryx.org>>
Cc: gnucash-user <gnucash-user at gnucash.org<mailto:gnucash-user at gnucash.org>>
Subject: Re: [GNC] How to treat a sale which involves more accounts?
Message-ID:
<CAESzd+yft6-HmQVNx=O+6bDB3repHemTUNW0E=mSTC=ArQW05g at mail.gmail.com<mailto:CAESzd+yft6-HmQVNx=O+6bDB3repHemTUNW0E=mSTC=ArQW05g at mail.gmail.com>>
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Hi Chris.
Thanks for your input - it seems cumbersome to me, adding accounts for each
instrument I buy. Nevertheless, in my accounting ignorance, I think I
understand it and it looks very nice and detailed.
I might try this next time I buy some instrument indeed!
Thanks,
F.
https://www.instagram.com/boniforti_music
https://soundcloud.com/boniforti_music
https://bonny-j.bandcamp.com
Am Mi., 25. Sept. 2024 um 01:35 Uhr schrieb Chris Miller via gnucash-user <
gnucash-user at gnucash.org<mailto:gnucash-user at gnucash.org>>:
Hi Folks,
Pardon the interruption; I'm breaking into the middle of this
conversation, so please forgive me if I misunderstand or repeat something
that has already been discussed.
I believe the discussion is recording the acquisition of musical
instruments and the occasional sale and how to account for that. I
recommend an asset account, "Instruments", with a sub account for each
instrument, which records the book value of each instrument. Remember the
book value is the cost to acquire and *deploy* an asset, which would also
include maintenance, so I would enter splits for "repairs", or "tuning", or
"travel" anything else you might do that costs you. When it comes time to
sell, you need to write off that asset and calculate the gain or loss on
sale and apply that to "income".
Purchase:
Instruments:Flugelhorn $2,000
Instruments:Expense:Travel $150
Instruments:Expense:Repair $50
Instruments:Expense:Maintentance $25
Visa Card $2,225
Several years later, add another split
Instruments:Expense:Tune-upTravel $75
Cash $75
The above activity is one transaction, that added a split as necessary,
and maintained the book value of the instrument, which would now be $2,225
+ $75 = $2,300
This is how you would record the sale for $3,500
Cash $3,500
Flugelhorn $2,300 (Write off the asset, you no longer own it)
Gain on Sale $1,200 (credit to income, This could, of course,
be a "Loss on Sale" which would debit income.
If different instruments are taxed
differently, then that could appear here, as well,
but tax is not typically an expense)
I hope I understood the problem and didn't just make a fool of myself
answering a question nobody is asking.
--
Chris.
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Message: 8
Date: Wed, 25 Sep 2024 08:22:34 +0200
From: Boniforti Flavio <boniforti.f at gmail.com<mailto:boniforti.f at gmail.com>>
To: Kalpesh Patel <kalpesh.patel at usa.net<mailto:kalpesh.patel at usa.net>>
Cc: gnucash-user at gnucash.org<mailto:gnucash-user at gnucash.org>
Subject: Re: [GNC] Owning stocks which are not publicly quoted - which
account type suits better?
Message-ID:
<CAESzd+yY4iprQeF-S9Y5dYp+6ZuhjyEcwg_4ikQrfgVe=hXgNQ at mail.gmail.com<mailto:CAESzd+yY4iprQeF-S9Y5dYp+6ZuhjyEcwg_4ikQrfgVe=hXgNQ at mail.gmail.com>>
Content-Type: text/plain; charset="UTF-8"
Hi Patel.
Actually, the complexity of setting it up and managing it as a "stock" is
what keeps me from doing it.
F.
https://www.instagram.com/boniforti_music
https://soundcloud.com/boniforti_music
https://bonny-j.bandcamp.com
Am Mi., 25. Sept. 2024 um 01:18 Uhr schrieb Kalpesh Patel <
kalpesh.patel at usa.net<mailto:kalpesh.patel at usa.net>>:
If you want to track it properly then you would want to set it up as a
"stock" and all of the workflows, such as setting up the security, that
goes with it. This will then flow correctly into your report, like advance
portfolio, if you ever wanted to generate them.
What makes you believe it shouldn't be?
-----Original Message-----
From: Boniforti Flavio <boniforti.f at gmail.com<mailto:boniforti.f at gmail.com>>
Sent: Tuesday, September 24, 2024 4:57 PM
To: gnucash-user at gnucash.org<mailto:gnucash-user at gnucash.org>
Subject: [GNC] Owning stocks which are not publicly quoted - which account
type suits better?
Hi.
I'm partner and own stocks of the company I work for. This company is not
on the public market.
The stock value is defined once per year and dividends are then paid out.
Do I understand correctly, that I don't have to set up a "stock" type
account for this, as those stocks are not publicly traded?
And the dividends are an account of type "income" - right?
Thanks,
F.
https://www.instagram.com/boniforti_music
https://soundcloud.com/boniforti_music
https://bonny-j.bandcamp.com
------------------------------
Message: 9
Date: Wed, 25 Sep 2024 08:23:46 +0200
From: Boniforti Flavio <boniforti.f at gmail.com<mailto:boniforti.f at gmail.com>>
To: R Losey <rlosey at gmail.com<mailto:rlosey at gmail.com>>
Cc: gnucash-user at gnucash.org<mailto:gnucash-user at gnucash.org>
Subject: Re: [GNC] Owning stocks which are not publicly quoted - which
account type suits better?
Message-ID:
<CAESzd+yYWxqj7mHSmVZqdirPNQ=7QmM+8bjS98YgDqa4CBCX4Q at mail.gmail.com<mailto:CAESzd+yYWxqj7mHSmVZqdirPNQ=7QmM+8bjS98YgDqa4CBCX4Q at mail.gmail.com>>
Content-Type: text/plain; charset="UTF-8"
Thanks R.
In our legislation we get taxed 35% (when dividends are paid out we only
receive 65% of them). After filing my taxes, and correctly declaring the
dividends, the subsequent year I get back the 35%.
Setting it up as "stock" type means adding the security stuff, which is not
my cup of tea (I'm just a normal user) and also probably maintaining it
(updating the values as they change yearly)...
F.
https://www.instagram.com/boniforti_music
https://soundcloud.com/boniforti_music
https://bonny-j.bandcamp.com
Am Mi., 25. Sept. 2024 um 02:23 Uhr schrieb R Losey <rlosey at gmail.com<mailto:rlosey at gmail.com>>:
I think it could still be a stock - you'll just need to make sure the
settings are correct -- and, of course, you cannot update the price online.
Dividends fall into three categories that I can think of (and I'm using
what I need for the US; not sure about your situation)
Taxable dividend income (most common)
Non-taxable dividend income (some fund's dividends are not taxed in the US)
Deferred income from dividends (dividends paid on IRAs, for example - for
traditional IRAs, the money is taken when taken out; for Roth IRAs, they
are not taxed)
I'm not a financial expert, so I may have missed something.
On Tue, Sep 24, 2024 at 3:57?PM Boniforti Flavio <boniforti.f at gmail.com<mailto:boniforti.f at gmail.com>>
wrote:
Hi.
I'm partner and own stocks of the company I work for. This company is not
on the public market.
The stock value is defined once per year and dividends are then paid out.
Do I understand correctly, that I don't have to set up a "stock" type
account for this, as those stocks are not publicly traded?
And the dividends are an account of type "income" - right?
Thanks,
F.
https://www.instagram.com/boniforti_music
https://soundcloud.com/boniforti_music
https://bonny-j.bandcamp.com
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--
_________________________________
Richard Losey
rlosey at gmail.com<mailto:rlosey at gmail.com>
Micah 6:8
------------------------------
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