[GNC] How to Properly Record Valuation Changes in Home Value?

[Kalpesh Patel]

I've done something similar. 

I've created a sub-account called "Appreciation" underneath the real estate
asset holding account, and then I add the valuation transaction as noted in
the appraisal report in "Appreciation" against "Retained Earnings"
underneath "Equity".

-----Original Message-----
From: Murugan Mariappan <m.muruganandam at hotmail.com> 
Sent: Monday, September 15, 2025 8:49 AM
To: gnucash-user at gnucash.org; Harold Hallikainen <harold at hallikainen.org>
Subject: Re: [GNC] How to Properly Record Valuation Changes in Home Value?

Revlaution suplus / deficit should be treated as non P&L items, so best way
to is to create a Revaluation Account under Equity and pass the entries for
example


Dr Assets:Building (PPE)                         $100,000
    Cr Equity: Revaluation Account         $100,000

If there is a loss then it will  be in the reverse for example

Cr Assets:Building (PPE)                         $50,000
    Dr Equity: Revaluation Account         $50,000



Saludos Cordiales


Murugan

________________________________
From: gnucash-user
<gnucash-user-bounces+m.muruganandam=hotmail.com at gnucash.org> on behalf of
Harold Hallikainen via gnucash-user <gnucash-user at gnucash.org>
Sent: 15 September 2025 00:03
To: gnucash-user at gnucash.org <gnucash-user at gnucash.org>
Subject: Re: [GNC] How to Properly Record Valuation Changes in Home Value?

I'd be tempted to have two subaccounts in the MyHome asset. These would be
Purchase Price and Unrealized Appreciation. Then have an income account
called Unrealized Income.

Harold


On Sun, September 14, 2025 7:57 pm, Tom Route-36 wrote:
> Hi all,
>
>
> This is more of a double entry bookkeeping question rather than 
> something specific to GnuCash; but I'd appreciate any input on the 
> proper way to do this.  I'm tracking the valuation changes of my 
> personal home based on notices that I get every 2 years from the 
> County Assessor.  When I was using Quicken, I did this in a single 
> account (named MyHome).  The opening balance of MyHome was my original 
> purchase price.  And then every 2 years as I got updated valuation 
> notices, I'd record a transaction back into that same MyHome account 
> (since Quicken would let me do that) to adjust the MyHome account 
> balance to make it match the current value listed on the County Assessor's
notice.
>
> Now that I'm using GnuCash and having to do things properly with 
> double entry accounting, I was wondering how to go back and fix 
> things.  I know I still want an Asset account for MyHome to track the 
> valuation.  But for DE accounting, what should I be using for that 
> corresponding second account to balance things out as the valuation
changes?
>
> Tom
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