Patrick, thank you for clarifying this discussion for me. I was wondering whether I should be worrying about something.
Adam, I think you may have a skewed idea of who makes up the GnuCash user group. I am not so sure that "every subscriber has knowledge of bookkeeping principles." ;) David T. On May 31, 2026 8:53:14 AM GMT+05:30, Patrick James via gnucash-user <[email protected]> wrote: >I have discussed that financial accounting records are not required to align >with tax records. Not always, but sometimes, the decision will be made to >align the financial records with tax records. It is often possible to do so, >but there are times when doing so does not present the financial accounting >records in a "proper" way, where "proper" is a management decision. > >This US-based discussion about probate and pre-paid medical expenses that were >previously deducted because they met a 7.5% threshold, and, furthermore, that >expense itemization was above the standard deduction... This must have an >audience of about 1, and it might be the case that the rules change tomorrow, >either by court decision or Congressional action. > >My bet, and I don't have the numbers, is that this is a "de minimis" situation >where the difference in total tax liability is close to zero, and thus the >personal representative/executor would have minimal liability unless tax >evasion could be proved. > >> On 05/30/2026 6:36 PM PDT Adam H. Kerman <[email protected]> wrote: >> >> >> 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. _______________________________________________ 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.
