I am not an accountant, so please excuse my ignorance. I was wondering
is it really necessary to create a separate deferred income account when
you could just do a transaction report on your IRA account to see how
much distribution you had in a year or a month? -- JC
On 1/15/24 5:33 PM, Michael or Penny Novack wrote:
On 1/15/2024 4:02 PM, R Losey wrote:
Thank you; this is helpful.
I never really thought about recording Deferred Income previously
because the investment people track it and let me know what has been
taken out every year. But after the discussion in this list last
year, I thought it might be good to track, at least the taxable
withdrawals.
I see that Deferred Income should have been recorded, but it wasn't.
Instead of using "Opening Balance" when they were set up, the amount
should have been more appropriately credited to Deferred Income, right?
The fact that the government considers the TRANSFER of assets between
two asset accounts (the IRA and checking) to be a taxable event even
though no new money coming in can be considered as special case if
"imputed income" and you COULD simply treat all imputed income
situations the same.
For example --- you might have as an employee benefit employer paid
group term insurance and your employer might even offer options like 5
years salary. Now the US government considers up to $50,000 face value
a non-taxable benefit but the premium for coverage above that amount
as "imputed income". In other words, this will appear on your pay stub
as part of your total taxable income even though you didn't actually
receive that as money.
Well in the big split where you enter your salary you could handle
that little piece using equity for the other side. As I have already
noted, NOT actually changing total equity to both debit and credit
equity by the same amount (the credit side being an income account,
but both income and expense accounts "really: of type equity and the
net of all unclosed income and expense accounts appearing with equity
as "retained gains (or losses)"
Some of us had to deal with other "imputed income". Thus if we had a
"split dollar" insurance benefit* the premium for that amount of term
coverage would show as an "imputed income" amount.
Michael D Novack
* The employer buys a cash value type policy on your life, and pays
the premium. You get the right to name the beneficiary and the option
(if you leave) to either buy and keep the policy (pay the employer for
those premiums) or have the policy surrendered and keep the difference
(after several years the policy should be worth more than the sum of
the premiums paid in). In other words, you have a favorable "adverse
choice" situation <<you decide knowing your health at this later date>>
_______________________________________________
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.
