Re: [GNC] Example of accounts for a personal residence with entries for US tax basis
If you need, you can split the expenditure between the Asset (affecting the basis) and the Expense accounts. The purpose of accounting is INFORMATION. That is what my "PS" was all about. Thinking that you have to split the expenditure is an illusion. You might want/need all of part of that expenditure considered BOTH as a (current) expense and as an increase in basis (for future capital gains calculation).This is unlike the situation for a business, as personal home expenses are not expenses in the tax sense. So "double counting" is not an issue. This is not unlike the situation for a non-profit paying an expense that meets the qualifications of one of the restricted funds. You transaction(s) have to BOTH record the expenditure and expense AND release that amount from restriction. Exactly what that latter part looks like depends on how the restricted funds are accounted for. Michael D Novack ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
Re: [GNC] Example of accounts for a personal residence with entries for US tax basis
Hi, On Tue, July 12, 2022 11:32 am, Tom Browder wrote: > On Tue, Jul 12, 2022 at 09:38 Michael or Penny Novack < > stepbystepf...@comcast.net> wrote: > [snip] > Thanks, Michael. Yes, I understand the need for carefully determining, > according to IRS rules, what is allowed for basis. But I'm not sure of > what > you're doing with the things not allowed for basis, e.g., maintenance > expenses. (Unless you're talking about an invoice which might need to be > split such as a reroof job plus chimney or dry rot repair.) I think what I would do is that those are literally Expense categories, and I would make appropriate accounts for that (e.g. Expenses:Landscaping or Expenses:Maintenance). If you need, you can split the expenditure between the Asset (affecting the basis) and the Expense accounts. > > -Tom > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. -derek -- Derek Atkins 617-623-3745 de...@ihtfp.com www.ihtfp.com Computer and Internet Security Consultant ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
Re: [GNC] Example of accounts for a personal residence with entries for US tax basis
On Tue, Jul 12, 2022 at 09:38 Michael or Penny Novack < stepbystepf...@comcast.net> wrote: > On 7/12/2022 9:01 AM, Derek Atkins wrote: > > The way I do it personally (note: IANAA) is that I have an Assets:Fixed > > Assets: account with subaccounts for, e.g. Purchase, > > Renovations, etc. > > > > That way I account for improvements that change the basis, and the summed > > balance of A:FA: is my current basis. > > > > -derek > > This is very much not a gnucash question per se. Or rather the gnucash > part of it rather simple, just make "basis" a parent with two children, > one for the original acquisition basis and one for later "improvements". > > BUT --- you need to know WHAT is allowed for each of these according to > IRS rules. The first part, "acquisition basis" is relatively simple and > probably already done long go. It's the second that is not so simple. > Not beyond the examples the IRS will use. In other words, what counts as > "improvements" which you can add to the basis and what is considered > "general maintenance" and you cannot add to the basis. Thus . Thanks, Michael. Yes, I understand the need for carefully determining, according to IRS rules, what is allowed for basis. But I'm not sure of what you're doing with the things not allowed for basis, e.g., maintenance expenses. (Unless you're talking about an invoice which might need to be split such as a reroof job plus chimney or dry rot repair.) -Tom ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
Re: [GNC] Example of accounts for a personal residence with entries for US tax basis
On 7/12/2022 9:01 AM, Derek Atkins wrote: The way I do it personally (note: IANAA) is that I have an Assets:Fixed Assets: account with subaccounts for, e.g. Purchase, Renovations, etc. That way I account for improvements that change the basis, and the summed balance of A:FA: is my current basis. -derek This is very much not a gnucash question per se. Or rather the gnucash part of it rather simple, just make "basis" a parent with two children, one for the original acquisition basis and one for later "improvements". BUT --- you need to know WHAT is allowed for each of these according to IRS rules. The first part, "acquisition basis" is relatively simple and probably already done long go. It's the second that is not so simple. Not beyond the examples the IRS will use. In other words, what counts as "improvements" which you can add to the basis and what is considered "general maintenance" and you cannot add to the basis. Thus . With the understanding that I a NOT "qualified" to give such advice Adding an addition or a garage -- obviously yes, add to basis Having the roof reshingled or the house repainted-- I think so, but best look up Replacing the carpeting -- I think not, but best to look up. Etc. Michael D Novack PS: If it is actually a different question you are asking along these lines: "I want to show, in our personal expenses, the cost of "improvements" that are allowed to be added to the basis << I want BOTH accounts debited >> what does the transaction look like?" In THAT case, you can do either two transactions or a two way split transaction, with the basis adjustment part a "journal transaction" (equity is the other side) ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
Re: [GNC] Example of accounts for a personal residence with entries for US tax basis
On Tue, Jul 12, 2022 at 08:01 Derek Atkins wrote: > The way I do it personally (note: IANAA) is that I have an Assets:Fixed > Assets: account with subaccounts for, e.g. Purchase, > Renovations, etc. > > That way I account for improvements that change the basis, and the summed > balance of A:FA: is my current basis. Thanks, Derek. I think that’s all I need. Best regards, -Tom ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
Re: [GNC] Example of accounts for a personal residence with entries for US tax basis
The way I do it personally (note: IANAA) is that I have an Assets:Fixed Assets: account with subaccounts for, e.g. Purchase, Renovations, etc. That way I account for improvements that change the basis, and the summed balance of A:FA: is my current basis. -derek On Tue, July 12, 2022 8:38 am, Tom Browder wrote: > I have looked at several accounting books and websites for an example of > accounting for an owner's personal residence and US fedral tax treatment > for improvements contributing to basis, but I haven't yet found a recipe > suitable for my lame level of bookkeeping knowledge. > > Can anyone point to such an example? The Gnucash docs do a good job for > business applications, and I will try to adapt that to my case, but a > better example for one's personal residence would be much appreciated. > > Best regards, > > -Tom > ___ > gnucash-user mailing list > gnucash-user@gnucash.org > To update your subscription preferences or to unsubscribe: > https://lists.gnucash.org/mailman/listinfo/gnucash-user > If you are using Nabble or Gmane, please see > https://wiki.gnucash.org/wiki/Mailing_Lists for more information. > - > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. > -- Derek Atkins 617-623-3745 de...@ihtfp.com www.ihtfp.com Computer and Internet Security Consultant ___ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. - Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
