Stan, There is one other question which may be pertinent. I am assuming the gains and losses you are referring to are realized gains or losses and not unrealized gains or losses. If they are, should they not be reporting in an Income:Investment account rather than directly into Equity. Depending on whether they are taxable or not they could report under Taxable or Non-taxable subaccounts of Income. Investment income is normally regarded as ordinary income in most jurisdictions.
If they are unrealized gains or losses, it is a common procedure to record them under Equity where you need to track them, but these should not normally be part of any closing procedure (not usually taxable) as they are part of the permanent accounts. That is also why Assets and Liabilities are not closed during a closing procedure only the temporary Income and Expense accounts for the period. Usually any taxation calculations for the closed period will produce a taxation liability in the next period but would not normally involve unrealized gains/losses. See https://smallbusiness.chron.com/journal-entry-record-realized-loss-investment-36486.html. Any advice about this here needs to be considered as advisory/illustrative only and used with caution. You should seek professional accounting advice about how to record your gains/losses and legacies relevant to your jurisdiction. Accounting for legacies can depend a lot on local legislation and may or may not be classified as income depending upon the circumstances. For example, when my wife received a legacy from her mother, the capital value of the legacy itself was not taxable under our local legislation, but any income received from it was thereafter. David Cousens ----- David Cousens -- Sent from: http://gnucash.1415818.n4.nabble.com/GnuCash-User-f1415819.html _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
