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

[Kalpesh Patel]

Well, the book should have all the assets, regardless of its value, listed. 

 

If you are not around, whoever gets hold of the book can get an fairly food idea what assets you had … so it has succession purpose.

 

From: David Warren <david at warren1.net> 
Sent: Friday, September 19, 2025 5:27 PM
To: Kalpesh Patel <kalpesh.patel at usa.net>
Cc: gnucash at kcburns.com; gnucash-user <gnucash-user at gnucash.org>
Subject: Re: [GNC] How to Properly Record Valuation Changes in Home Value?

 

I can see zero purpose in doing that but whatever works for you. 

 

On Fri, Sep 19, 2025, 5:04 PM Kalpesh Patel <kalpesh.patel at usa.net <mailto:kalpesh.patel at usa.net> > wrote:

Create capitalization account and depreciate that  asset down to zero on day one. 

By the time I run it to ground, its value ends up being a monument in a junk yard.

If it is  a collectable then a different story...

-----Original Message-----
From: David Warren <david at warren1.net <mailto:david at warren1.net> > 
Sent: Thursday, September 18, 2025 2:23 PM
To: gnucash at kcburns.com <mailto:gnucash at kcburns.com> 
Cc: gnucash-user <gnucash-user at gnucash.org <mailto:gnucash-user at gnucash.org> >
Subject: Re: [GNC] How to Properly Record Valuation Changes in Home Value?

So when you buy a car, you capitalize it on your balance sheet? (I do too, just curious what others do). Then I credit an auto asset account and debit auto expense year by year so I get a fair sense of what the car costs me annually.

On Thu, Sep 18, 2025, 12:32 PM <gnucash at kcburns.com <mailto:gnucash at kcburns.com> > wrote:

>
> > Date: Wed, 17 Sep 2025 11:18:18 -0400
> > From: Michael or Penny Novack <stepbystepfarm at comcast.net <mailto:stepbystepfarm at comcast.net> >
> > To: gnucash-user at gnucash.org <mailto:gnucash-user at gnucash.org> 
> > Subject: Re: [GNC] How to Properly Record Valuation Changes in Home
> >       Value?
> > Message-ID: <b8121c90-fdf5-420a-9f66-34c16e27a9ad at comcast.net <mailto:b8121c90-fdf5-420a-9f66-34c16e27a9ad at comcast.net> >
> > Content-Type: text/plain; charset=UTF-8; format=flowed
> >
> > On 9/16/2025 12:09 PM, gnucash at kcburns.com <mailto:gnucash at kcburns.com>  wrote:
> >> I have been following this discussion with interest, and now have a
> >> question:
> >>
> >> My Balance Sheet (report) shows an Unrealized Gains line near the 
> >> bottom, which is presumably my unrealized investment gains?? But, I 
> >> do not find that I have an account named named Unrealized Gains... 
> >> So, I wonder how this Unrealized Gains line works, and if I should 
> >> tap into that process when recording the Unrealized Gains on my home?
> >> I would prefer to keep these Unrealized Gains lines (investments vs
> >> home) separated, but have them appear one-after-the-other in the 
> >> Balance Sheet (report).
> >>
> >> Thanks,
> >> Ken
> >
> > It's a matter of NAMING your account (for unrealized gains)
> >
> > But first an explanation of the "unrealized gains" (or losses) in 
> > the Ba;lance Sheet. With gnucash, we do not usually perform a "close 
> > the books" operation prior to running the Balance Sheet. So there is 
> > a net outstanding sum of all the accounts of types income and 
> > expense. These account types are actually of fundamental type 
> > Equity, so that net belongs under Equity on the Balance sheet. The 
> > name being used is Unrealized Gains (if credit) or Unrealized Losses 
> > (if debit)
> >
> > So ---- If you want explicit "Unrealized Gains" accounts you will 
> > have to create them with some different name <*> but note that you 
> > will want them under assets (or liabilities or equity) and NOT under 
> > types income or expense.
> >
> > Michael D Novack
> >
> > * They will be shoeing up where you put them.
>
>
> Thanks Michael!
>
> I now have my unrealized gains/losses for my house (and my autos, 
> since I don't depreciate them for tax purposes) showing up as desired 
> in my Balance Sheet report (as Equity:Unrealized Gain - Home Appreciation).
>
> Further analyzing GnuCash's internal Unrealized Gains line in the 
> Balance Sheet report, I now see that it exactly matches the unrealized 
> gains shown in my Advanced Portfolio Report.
>
> So, I am now happy with my bookkeeping!
>
> Thanks,
> Ken
>
>
> _______________________________________________
> gnucash-user mailing list
> gnucash-user at gnucash.org <mailto:gnucash-user at gnucash.org> 
> To update your subscription preferences or to unsubscribe:
> https://lists.gnucash.org/mailman/listinfo/gnucash-user
> -----
> Please remember to CC this list on all your replies.
> You can do this by using Reply-To-List or Reply-All.
>