Yeah, I get that an accountant doesn't call this income, but frankly, I don't really care about the esoterica of accounting in this case. I care about what the government says is income. Accountants can yap all day long about how the IRA payouts aren't income; the IRS is still going to fine me if I don't pay up.
-------- Original Message -------- From: Stan Brown <the_stan_br...@fastmail.fm> Sent: Wed Mar 16 20:32:51 EDT 2022 To: gnucash-user@gnucash.org Subject: Re: [GNC] IRA/401K income detection On 2022-03-16 15:09, D. via gnucash-user wrote: > when Joe Retiree takes money from their IRA, the IRS considers it income, and > taxes it accordingly. But when Joe tries to enter the transfer from their IRA > to their checking account in GnuCash, it doesn't get treated as income -- Stan Brown Tehachapi, CA, USA https://BrownMath.com Because it _isn't_. (The tax code's definition of income is not the same as an accountant's.) It is a debit to the asset of Cash/Banks, and a credit to the asset of investments. As several people have said, this can be record as the above simple 2-split transaction, in which case taxes are tidied up later when the income tax is paid, or as a four-way split: Debit: Assets:Cash/Banks Credit: Assets:IRA Credit: Liability:Taxes payable Debit: Expenses:Income tax -- Stan Brown Tehachapi, CA, USA https://BrownMath.com _______________________________________________ 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.
