Record losses as negative income.
-------- Original Message -------- From: gnu Gord <gnucashg...@gmail.com> Sent: Tue Mar 02 19:10:49 EST 2021 To: David Cousens <davidcous...@bigpond.com> Cc: gnucash-user@gnucash.org Subject: Re: [GNC] Capital Gains Thanks for the explanation. I was trying to follow the example in Chapter 11 of the GnuCash Documentation that seems to indicate the unrealized capital gains are recorded in Assets:Fixed Assets... and I would record a transfer from Income:Unrealized Gains... However, I didn't understand how to record a loss. Would I make an entry in the Income:Unrealized Gains as a negative amount or create an entry in an Expenses:Unrealized Gains account? With a similar approach for realized capital gains? This is all just for my own personal records so, I guess, I could record it anyway I like but I'd like to follow some sort of standard so I don't go too far astray! 😉 Thanks again. On Tue, Mar 2, 2021 at 3:39 PM David Cousens <davidcous...@bigpond.com> wrote: > gnuGord, David, > > There is nothing in accounting practice per se to stop you tracking > unrealized gains or losses for your own purposes, e.g. management of your > assets. > > It is just that they are not usually recognized for purposes like taxation > and financial reporting as income or expenses for a business until they > have > actually been incurred, usually on the sale of the asset/stock > involved.There are some cases in some jurisdictions where they are recorded > for financial reporting in addition to realized gains and losses but this > is > not common. Capital gains taxes do not normally apply to unrealized gains > or > losses. The rules on this vary between jurisdictions and this is a case > where local professioanl accounting advice is needed. > > If you are going to track them, you would normally do so against a > sub-account of Equity labelled as "Unrealized Gains or Losses" (which may > or > may not in turn have sub-accounts for specific assets or asset classes > depending on the detail you require). It would be also a good practice to > have a sub-account totalling into the asset account for the particular > asset > to record unrealized gains and losses so that you can easily differentiate > realized gains and losses from unrealized gains and losses in your accounts > where you are using them to formulate input for taxation and financial > reporting . > > The sale transaction which zeros the asset value and debits your bank or > brokerage account then includes two additional splits which zero out the > unrealized gains and losses balances in the asset sub account and the > Unrealized Gains and Losses account(s) in Equity. > > 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. > _______________________________________________ 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. _______________________________________________ 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.
