Let's start with your best bet is to work with your tax professional as to how best to keep track of what's needed for taxes.
In the US, what you call a "credit" generally would not be an asset account. The "credit" would be a potential offset to some future gain, if there is any future gain, so I would leave all this over on the equity side. Day 0 Purchase: Stock (asset) $100DR Cash $100CR Purchase of 100 shares of Stock Y for $1 per share Day 365 Sale: Cash $90DR Capital Gain $10DR Stock (asset) $100CR Sale of 100 shares of Day 0 Stock Y for $0.90 per share. NOTE: One hopes that capital gains has a CR (gain) balance, rather than the DR balance above (loss). Later, if there was some sale for a gain, then the CR recorded to Capital Gain would offset some or all of the DR. Also note that matching the shares as I have done above is not always as simple as this single stock sale where all shares are purchased on a single day and the entire holding is sold a year later. Again, talk to your tax professional about how to best keep the records necessary for tax compliance. > On 01/23/2024 1:43 PM PST Mattia Rizzolo <mat...@mapreri.org> wrote: > > > Hello, > > I'd like some input on how to best record a tax credit due to capital > loss, and possibly the following usage of such credit. > Disclaimer: I'm not doing this for anything worth, it's a personal book > that nobody but me sees, so I can take a few liberties and not follow > whatever regulation to the letter. Besides, I have no formal education > on accounting. > > > The case is the following: > > 1 buy security A, cost $100 > 2 buy security B, cost $100 > 3 sell security A, get $90 > 3a → record $10 loss > 3b → get a $10 tax credit on following capital gains > 4 sell security B, get $120 > 4a → record $20 gain > 4b → offset $10 from 3b > 4c → pay tax on the remaining $10 (26%, $2.6 over here) > > I reckon all jurisdictions have something similar in concept, all with > their differences in details. > > This is a tad further complicated by the fact that each broker has its > own "bucket" of credits (can't comingle losses and gains across > different brokers). Also the credits expire after 4 years, so I should > record under which year they matured. As such, I expect an addition to > my CoA, such as: > Assets > |- Credits > |- Capital Loss credits > |- broker 1 > |- 2020 > |- 2021 > |- 2022 > |- 2023 > |- 2024 > |- broker 2 > |- 2022 > ..... > > > > I've been using gnucash for ~3 years now, but I always procrastinated on > figuring out the 3b/4b steps, just posting the resulting net tax > transaction as computed by the broker. > For me it's really not obvious what's the opposing account from where > the money should come/go... > How do people do it here? :) > > > Thank you for all the hints! > > -- > regards, > Mattia Rizzolo > > GPG Key: 66AE 2B4A FCCF 3F52 DA18 4D18 4B04 3FCD B944 4540 .''`. > More about me: https://mapreri.org : :' : > Launchpad user: https://launchpad.net/~mapreri `. `'` > Debian QA page: https://qa.debian.org/developer.php?login=mattia `- > _______________________________________________ > 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.
