Hi all,
I wanted to reply to all of you here who jumped in with your advice and
comments. I think I understand the proper way to handle this now. And
it seems pretty simple and straightforward too thanks to all your
feedback. To keep things recorded properly I just need to create a new
Equity account (named Unrealized Appreciation or something similar).
And then for each valuation change entry in my Asset account (MyHome) I
put a corresponding entry in that new Equity account to balance things.
Really simple now that I look back on my question. Anyway, thanks again
to everybody.
Tom
On 9/15/2025 4:30 PM, David Warren wrote:
Most accountants will tell you to credit equity for unrealized appreciation
in your assets.
But if you are doing your own books, it's really your choice in terms of
what types of reports you want to see and how you want to use. Sometimes I
credit income accounts for unrealized appreciation because it makes it
easier for me to track how a certain asset account has grown or shrunk year
by year and what types of income (realized, unrealized, taxable or not yet
taxed) it has thrown off. When the income is eventually realized I credit
realized income and debit unrealized income, which works for me. But it's
really a matter of how you want things to work for you.
On Mon, Sep 15, 2025, 5:03 PM Kalpesh Patel <[email protected]> wrote:
I've done something similar.
I've created a sub-account called "Appreciation" underneath the real estate
asset holding account, and then I add the valuation transaction as noted in
the appraisal report in "Appreciation" against "Retained Earnings"
underneath "Equity".
-----Original Message-----
From: Murugan Mariappan <[email protected]>
Sent: Monday, September 15, 2025 8:49 AM
To: [email protected]; Harold Hallikainen <[email protected]>
Subject: Re: [GNC] How to Properly Record Valuation Changes in Home Value?
Revlaution suplus / deficit should be treated as non P&L items, so best way
to is to create a Revaluation Account under Equity and pass the entries for
example
Dr Assets:Building (PPE) $100,000
Cr Equity: Revaluation Account $100,000
If there is a loss then it will be in the reverse for example
Cr Assets:Building (PPE) $50,000
Dr Equity: Revaluation Account $50,000
Saludos Cordiales
Murugan
________________________________
From: gnucash-user
<[email protected]> on behalf of
Harold Hallikainen via gnucash-user <[email protected]>
Sent: 15 September 2025 00:03
To: [email protected] <[email protected]>
Subject: Re: [GNC] How to Properly Record Valuation Changes in Home Value?
I'd be tempted to have two subaccounts in the MyHome asset. These would be
Purchase Price and Unrealized Appreciation. Then have an income account
called Unrealized Income.
Harold
On Sun, September 14, 2025 7:57 pm, Tom Route-36 wrote:
Hi all,
This is more of a double entry bookkeeping question rather than
something specific to GnuCash; but I'd appreciate any input on the
proper way to do this. I'm tracking the valuation changes of my
personal home based on notices that I get every 2 years from the
County Assessor. When I was using Quicken, I did this in a single
account (named MyHome). The opening balance of MyHome was my original
purchase price. And then every 2 years as I got updated valuation
notices, I'd record a transaction back into that same MyHome account
(since Quicken would let me do that) to adjust the MyHome account
balance to make it match the current value listed on the County
Assessor's
notice.
Now that I'm using GnuCash and having to do things properly with
double entry accounting, I was wondering how to go back and fix
things. I know I still want an Asset account for MyHome to track the
valuation. But for DE accounting, what should I be using for that
corresponding second account to balance things out as the valuation
changes?
Tom
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