7:01pm -0000 05/30/26 Steve Butler <[email protected]> wrote:
>Shouldn't this be a question for the state's CPA? I'm preparing the tax return, or at least a draft. Even if a CPA were to be engaged, I still want to present him with a decent set of books. >Not sure how this pertains to setting up the transaction in GnC. Because if one is making sure that accounts in the books are mapped to lines on a tax return, the accounts must be characterized the same way on both. One must properly characterize whether the reimbursement or refund is a recovery. If it's not a recovery, it's a contra expense and entered into the same expense account as the initial transaction. If it's a recvery, then it's entered into an income account. I have "includible" and "excludable" subaccounts under the recovery account. If it weren't for the anamolous manner in which reimbursements and refunds are treated depending on when received and the extent to which there was a tax benefit for the initial expense, it would simply be booked as a contra expense. But that's not the way tax compliance works. Every subscriber has knowledge of bookkeeping principles and may offer a good suggestion or, under a similar set of circumstances, do it the way I figured it out. _______________________________________________ gnucash-user mailing list [email protected] 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.
