You are correct, Flavio
Look, we on this help list are qualified to give advice how to use
gnucash to do double entry bookkeeping, That does not mean we are
qualified to give accounting advice. Some of us do have a reasonable
amount of knowledge/experience, but as non-professionals, treat that
with more than a grain of salt.
Collectibles and other fixed assets of this sort. Things that are NOT
expected to depreciate in value.
If NOT in the business of dealing in this whatever, you still are
supposed to declare as income any NET gain from the sale of such assets,
but losses are deductible from gains only up to the amount of gains.
However I believe the IRS has a category "collectibles" and if you have
those of different sorts you can lump when calculating net gain. In
other words, could use a loss in selling an instrument against the gain
of selling say a painting. BUT --- get PROFESSIONAL advice on that.
OK ---- I would suggest under fixed assets an account "instruments" and
when you purchase an instrument create a child account say "oboe1" which
will be debited for the purchase price. That MAY be the only entry in
that account until/unless sold. But I chose an oboe because perhaps this
old oboe needed repair to pads and springs and a new reed. You would be
allowed to enter those transactions adding to what the oboe cost <<
repairs needed later because you are playing it would be expenses, not
additions to the basis >>
IF --- you later sold the oboe, you would have a SPLIT transaction,
debiting cash, crediting "sale of instruments" (for the amount of the
sale) and debiting "cost of instruments sold" and "oboe1" (for the total
of oboe1). EXCEPT -- if you also were collecting antique sheet music or
some other form of collectible probably"sale of collectibles" and "cost
of collectibles sold".
Musical instruments not the only form of collectibles that might have
initial repairs added to the original basis. Say an antique chair might
be recaned, artwork cleaned or reframed, etc. But some forms of
collectibles not, stamps, coins, etc. Again, this is the sort of thing
for which you need professional advice. How much total value are we
talking about? *
Michael D Novack
LOL --- back when I lived near Philadelphia the shofar blower at my
synagogue was 2nd trumpet with the Philadelphia Philharmonic. His hobby
was collecting folk instruments. On the Orchestra's trip to China, they
were taken to some place out in the countryside to do a concert.
Wandering the town's marketplace, he saw number of folk instruments for
sale of sorts he had never seen before. Not expensive, so he bought some
examples. When back home orchestra members were interviewed and when
shown what he had brought back, a reporter unfortunately asked "what are
they worth?" "No idea, cost me very little" "Will have to ask" It
turned out that his "never seen before" was because these instruments
were unknown in the US or Europe, no museum anywhere had examples.
Sadly, that meant he couldn't afford the insurance to be able to keep
them at home.
On 9/24/2024 4:26 PM, Boniforti Flavio wrote:
Hi David.
In fact I don't buy instruments with the goal of making profit out of them.
I collect and play them too. In fact, for this situation I would simply
account for both purchase and sale as you described.
So there's no tax implication whatsoever in my case.
But then...
I look at my collection of instruments as an asset, not as an expense. I do
own a bunch of vintage instruments, which have the value corresponding to
what I've paid for them. So if I consider this collection to be an asset,
then the suggested accounts you proposed won't work anymore (please correct
me if I'm wrong).
I was thinking more of something like this:
PURCHASE:
"Asset:Bank Account" decrease
"Asset:Musical Instruments Collection" increase
It becomes for me more difficult to understand how a sale would have to be
registered, as it not only increases my bank account, but it also decreases
the musical instruments collection - but only of the value I paid for it
when I bought it. Given the fact that many items will increase their value
over time, there might be a surplus. The easy example is: I bought item A
in 2002 for 1000 and I sell it now in 2024 for 2000 --> my collection
account would decrease by 1000, my bank account would increase by 2000 but
where do I put the surplus? I thought of something like this:
SALE:
"Asset:Bank Account" increase +2000
"Asset:Musical Instrument Collection" decrease -1000
"Income:Musical Instrument Sales" increase +1000
If the above is correct and feasible, how would I enter it in GC?
F.
https://www.instagram.com/boniforti_music
https://soundcloud.com/boniforti_music
https://bonny-j.bandcamp.com
Am Di., 24. Sept. 2024 um 06:48 Uhr schrieb David Cousens <
davidcousen...@gmail.com>:
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