Re: [GNC] Tutorial and Concepts

[Michael or Penny Novack via gnucash-user]

On 11/24/2024 12:04 AM, R Losey wrote:
Now this puzzles me... double entry bookkeeping is double bookkeeping, 
whether a transaction has the simple case of "used my credit card to 
buy gas" or a transaction with a dozen accounts (such as a 
paycheck, with deductions for 401K, medical insurance, dental 
insurance, social security taxes, medicare taxes, and so on). In each 
transaction, there must be a balance.


Even back when I used Quicken, I had entries with multiple splits.

The more my understanding of accounting grows, the more I appreciate 
GnuCash.


You especially appreciate it if you learned in the days of pen and ink 
on paper. No more posting errors! No more work to produce standard 
reports like Balance Sheet and P&L. No more errors in the trial balance 
to find/correct.


OK. I guess a simple example is in order. A, B, and C are out to lunch 
together, A a friend of B and C a friend of B, but A and C strangers to 
each other. They will be each paying their own tab. A says "oops, left 
my wallet in my desk drawer. B can you lend me a twenty?" B says "I 
don't have any extra cash on me. C, can you lend me a twenty?" C says 
"sure, and hands a twenty to A.


What does this transaction look like on B's books? Of course the 
question isn't really about gnucash but about accounting (which 
account(s) are being debited and which credited) Hint: May need to be 
creating accounts.


Michael D Novack


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Re: [GNC] Dealing With Tax To Pay On Stocks

[Murugan Mariappan]

Enter all your fees obligation under Brokerage Fees in the stock assistant
Once you've entered all the charges under  Brokerage Fees , follow these steps:
1. Open Your Cash Account

  *   After entering the fees in the Stock Account, you need to move to your 
Cash Account to handle how these fees impact your available balance.

2. Go to Split View

  *   In your Cash Account, go to the Split View (this allows you to divide the 
cash entries into different categories or accounts for better tracking).

3. Insert the Fees and Tax Split

  *   In the Split View, you will need to create entries to split out the 
brokerage fees, taxes, and any other costs from the total cash movement. This 
ensures that each type of expense is accounted for separately and correctly.
  *   For instance:
 *   Debit the Brokerage Fees Expense Account for the brokerage commission.
 *   Debit the Transaction Fees Account for any other fees like exchange or 
clearing fees.
 *   Debit the Tax Expense Account for any taxes paid immediately (e.g., 
stamp duty, securities transaction tax).
  *   On the credit side of the split view, you will credit the Cash Account 
for the total amount of fees and taxes paid.

4. Handle Pending Tax Payments (Payable Accounts)

  *
If the tax amount is due in the future (not paid immediately), you will need to 
record it in a Payable Account (e.g., a Tax Payable Account). This ensures that 
the tax liability is tracked until you settle it.
  *
To do this:
 *   Debit the Tax Expense Account for the tax amount, reflecting the 
expense incurred.
 *   Credit the Tax Payable Account for the same amount, reflecting the 
obligation you owe but haven’t paid yet.
  *
When you eventually pay the tax:
 *   Debit the Tax Payable Account (removing the liability from the books).
 *   Credit the Cash Account for the payment amount.


Example of Accounting Entries
Transaction:
You bought shares and incurred the following costs:

  *   Brokerage Fee: $100
  *   Transaction Fee: $20
  *   Tax (Stamp Duty): $50
  *   Total Cost: $170 (sum of all fees)

Step 1: Record Brokerage Fees and Taxes in Stock Account
In the Stock Account, input the following:

  *   Brokerage Fee: $100
  *   Transaction Fee: $20
  *   Tax (Stamp Duty): $50

Step 2: Record in Cash Account Using Split View
In your Cash Account (Split View), you will have the following splits:

  *   Debit $100 to the Brokerage Fees Expense Account
  *   Debit $20 to the Transaction Fees Expense Account
  *   Debit $50 to the Tax Expense Account
  *   Credit $170 to the Cash Account (total outflow)

Step 3: Record Pending Tax Payment (if applicable)
If the $50 tax is not paid immediately but will be paid in the future, create 
the following entries:

  *   Debit $50 to the Tax Expense Account (to reflect the incurred tax 
expense).
  *   Credit $50 to the Tax Payable Account (to record the liability for tax 
not yet paid).

When you pay the tax later:

  *   Debit $50 to the Tax Payable Account (to settle the liability).
  *   Credit $50 to the Cash Account (for the payment made).






Saludos Cordiales


Murugan


From: gnucash-user 
 on behalf of 
Griffin 
Sent: 23 November 2024 19:06
To: gnucash-user@gnucash.org 
Subject: [GNC] Dealing With Tax To Pay On Stocks

Hello,

I am in Canada and I trade US stocks via TD Active Trader. The
confirmations I receive identify, for the buy leg, the gross transaction
amount and the commission. For the sell leg they identify those two as
well as the tax to pay

My hierarchy is

USD - Assets
 USD - Trading Accounts
 TD Active Trader
 USD - Margin Account
 SPY

USD - Capital Gain
 USD - Trading Accounts
 TD Active Trader
 Stocks
 SPY

USD - Expenses
 USD - Trading Accounts
 TD Active Trader
 Commissions and Fees
 Commissions
 Fees
  Taxes To Pay

When using the wizard to record the transaction, I have the opportunity
to specify the Commissions, so I just select the Commissions sub-account.

I don't see an option to record the Tax to Pay.

Any thoughts on this?

Thanks

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