I think you'll have issues if you try to have different account types
between parents and children. I vaguely recall a thread about that a few
years ago. (And I might have even done it once myself)
Some folks were making Top Level accounts for various properties and
duplicating other parts of the tree under each. And I think they found
some bugs as a result, but those bugs wouldn't be resolved, because the
answer in the case you need to go that far is to make separate books for
each property and then have a 'company/consolidated book' that takes
bottom-line numbers from the individual property books.
If your needs aren't that complicated, there is nothing wrong with
contra-accounts however. Accountants use them fairly regularly.
Regards,
Adrien
On 1/21/22 12:44 PM, p...@kroitor.ca wrote:
Thanks for this -- and the other replies -- it's just what I was looking
for.
I neglected to make clear that my question was entirely about the CoA
structure; I am very clear about the tax reporting requirements and
consequences.
I like the idea of an intermediate-level account for each property, with
subordinate accounts for the initial purchase and (separately) the annual
valuation adjustments.
It spawns a second question: what if I add the expected tax hit and sales
costs as sub-accounts under this same mid-level Asset account:
- Property 1
- Purchase
- Value Adjustment
- Anticipated taxes on sale
- Anticipated sales costs
- Property 2
- Purchase
Etc.
Obviously the latter two in each property would be negative. Should they be
asset accounts that contain negative entries? Or marked as Liability
accounts in GnuCash even though the parent account is an asset?
The good thing about this is that the parent account value reflects the
actual net value of the property if it were sold.
Paul
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