Flavio, Even as a private individual you will be subject to at least taxation legislation regarding income. The business legislation may or may not apply depending on the level of activity. My wife is an artist, formerly making her living from exhibitions and painting sales. We are now retired and these days she only occasionally sells paintings mainly to close friends - any income earned from that for example is reportable, although not necessarily taxed. The devil is in the detail here, hence our suggestions about getting professional advice.
David On Mon, 2024-11-25 at 18:25 +0100, Boniforti Flavio wrote: > Hi David. > No taxation and regulations needed here: I'm a private individual, > not a business. > > F. > https://www.instagram.com/boniforti_music > https://soundcloud.com/boniforti_music > https://bonny-j.bandcamp.com > > > Am Fr., 22. Nov. 2024 um 19:58 Uhr schrieb David Cousens > <davidcousen...@gmail.com>: > > Boniforti, > > > > This is where you need an accountant in your jurisdiction. It all > > depends on the business legislation and taxation legislation and > > often on regulations and past court decisions and on the exact form > > of agreement you reached with the buyer and the documentation of > > that that you have. > > > > If your taxation authority has an advisory service you could > > contact them for advice about whether you treat shipping as an > > expense or liability. If you issued an invoice or receipt to the > > buyer which specified the price of the instrument, and the shipping > > costs and the total of 1214Eu, then there is a good chance the > > shipping costs are effectively considered as being paid by the > > buyer, so on receipt of the funds, that creates an obligation on > > you to pay for the shipping, i.e. a liability as the funds are only > > being passed to the shipper through you, so the second treatment is > > most likely to be appropriate but I cannot know for sure. > > > > Cheers > > David > > > > > > On Fri, 2024-11-22 at 09:14 +0100, Boniforti Flavio wrote: > > > Hi David. > > > Shipping is factually paid by me with my money, but the buyer is > > > giving me the money for the shipping. So do I understand it right > > > that I could separate this sale and just enter two transactions > > > in my checking account? One would be the shipping costs, the > > > other is the rest from 1214 EUR? I then would have two different > > > "sources of money" for both zeroing the "Korg MS-20M" account and > > > for the "shipping costs of sales" account. Could this work? > > > > > > F. > > > > > > https://www.instagram.com/boniforti_music > > > https://soundcloud.com/boniforti_music > > > https://bonny-j.bandcamp.com > > > > > > > > > Am Fr., 22. Nov. 2024 um 04:57 Uhr schrieb David Cousens > > > <davidcousen...@gmail.com>: > > > > It all depends on whether the buyer or seller is paying the > > > > shipping > > > > costs. > > > > > > > > If the seller is paying the shipping costs then it is an > > > > expense to the > > > > seller but in this case the shipping costs are not explicitly > > > > included > > > > in the purchase price and would be paid. > > > > > > > > For a business this could be recorded as > > > > > > > > > > > > Asset:Mus. Inst. Cr 800.00 > > > > Expenses:CoGS Dr 800.00 > > > > Asset:Bank Account Dr 1241.00 > > > > Income:Sales Mus Inst Cr 1241.00 > > > > > > > > when the funds are received > > > > > > > > Asset:Bank account Cr 35.49 > > > > Expense:Shipping Dr 35.49 > > > > > > > > when shipping is paid (these could be combined if simultaneous > > > > but > > > > ideally better to keep the splits with memo annotations) > > > > > > > > and the nett profit on the sale is 1241-800-35.49 = 405.51 > > > > > > > > If the buyer is paying the shipping costs, then the purchase > > > > price > > > > should have included the shipping over and above the sale price > > > > of the > > > > instrument itself and the seller cannot claim the shipping as > > > > an > > > > expense and part of the money received pays for the shipping. > > > > > > > > For this case it could be recorded as > > > > > > > > Asset Bank Dr 1178.51 > > > > Asset:Mus. Inst. Cr 800.00 > > > > Expenses:CoGS Dr 800.00 > > > > Income:Sales Cr 1178.51 > > > > > > > > Asset:Bank Dr 35.49 > > > > Liability:Shipping Cr 35.49 > > > > > > > > when the funds are received > > > > > > > > and when the shipping is paid > > > > > > > > Asset:Bank Cr 35.49 > > > > Liability:Shipping Dr 35.49 > > > > > > > > and in this case the net profit is 1178.51-800 = 478.51 > > > > > > > > Which of these it is appropriate should be clear from the sales > > > > invoice. > > > > > > > > David Cousens > > > > > > > > On Thu, 2024-11-21 at 20:52 -0600, R Losey wrote: > > > > > Expense accounts, because they are usually only increased, > > > > > just have > > > > > Expenses for debits. The credit is called a "Rebate". I don't > > > > > know if > > > > > you > > > > > meant to make that account an expense account. > > > > > > > > > > I don't see an Income anywhere in the list. > > > > > > > > > > Your asset should have gone down by 800 EUR, as you did. The > > > > > gain in > > > > > this > > > > > sale is 414 EUR, of which the shipping should be an expense, > > > > > and the > > > > > Income > > > > > will be 1214 minus the shipping cost, right? > > > > > > > > > > > > > > > On Thu, Nov 21, 2024 at 3:53 PM Boniforti Flavio > > > > > <bonifort...@gmail.com> > > > > > wrote: > > > > > > > > > > > Hi all. > > > > > > > > > > > > I've just sold one of my instruments, for which I already > > > > > > have a > > > > > > dedicated > > > > > > account "Assets:Current Assets:Music Equipment EUR:Korg MS- > > > > > > 20M". > > > > > > The opening balance for this item is 800 EUR. > > > > > > I now sold it and I got 1214 EUR for it. So I entered 1214 > > > > > > in the > > > > > > "Total > > > > > > Increase" column, with "Transfer" my EUR Checking account. > > > > > > Then I > > > > > > added > > > > > > splits: > > > > > > 800 "Total decrease" so that the item's value is 0 (as I > > > > > > sold it, I > > > > > > don't > > > > > > have anymore its value at home) - Transfer = "Korg MS-20M" > > > > > > account; > > > > > > 378,51 "Total decrease" (which is the surplus I made) - > > > > > > Transfer = > > > > > > "Income:Music Equipment Sold EUR" > > > > > > 35,49 "Total decrease", the price I paid for shipping this > > > > > > item to > > > > > > the > > > > > > seller - Transfer = "Expenses EUR:Post:Shipping cost of > > > > > > sales" > > > > > > > > > > > > Now when I look at the last account listed, I see 35,49 in > > > > > > the > > > > > > "Rebate" > > > > > > column and the "Expense" column is empty - which in the end > > > > > > results > > > > > > in a > > > > > > negative total: > > > > > > [image: image.png] > > > > > > What am I doing wrong? > > > > > > > > > > > > Thanks, > > > > > > Flavio. > > > > > > > > > > > > https://www.instagram.com/boniforti_music > > > > > > https://soundcloud.com/boniforti_music > > > > > > https://bonny-j.bandcamp.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 > > > > > > ----- > > > > > > 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 > > > > ----- > > > > 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 ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
