On 3/17/2022 4:41 PM, David G. Pickett via gnucash-user wrote:
Lots of fun interest here! Not exactly looking for accounting advice, except
how to properly encode this well understood activity so it generates a tax
report item.
Can we devise a GNUCash programatic enhancement of the double
Lots of fun interest here! Not exactly looking for accounting advice, except
how to properly encode this well understood activity so it generates a tax
report item.
Michael D Novack seems to be hinting how to do this, creating the 100% pretax
IRA/401K account in equity and, assuming it is
Message
From: Stan Brown
Sent: Thu Mar 17 09:48:26 EDT 2022
To: gnucash-user@gnucash.org
Subject: Re: [GNC] IRA/401K income detection
On 2022-03-16 17:49, D. via gnucash-user wrote:
> But one of the big selling points of IRA/401Ks is that they earn
> money tax deferred (which I'v
On 3/16/2022 8:49 PM, D. wrote:
Michael,
I think I get what you're saying. In my own case, I've taken to
separating the pretax streams into their own income accounts, which
seemingly addresses some of your points.
But one of the big selling points of IRA/401Ks is that they earn money
tax
On 2022-03-16 17:49, D. via gnucash-user wrote:
> But one of the big selling points of IRA/401Ks is that they earn
> money tax deferred (which I've also isolated into their own income
> accounts). How does Joe allocate the distributions-- or does it
> even matter? Each distribution is going to
And Stan has now given the breakdown of the splits to accomplish it.
That would be followed up with:
Dr. Liability:Taxes payable
Cr. Checking
when they are physically paid.
Regards,
Adrien
On 3/16/22 7:54 PM, D. via gnucash-user wrote:
Yeah, I get that an accountant doesn't call this
Good to know, thanks for the clarification.
Regards,
Adrien
On 3/16/22 6:49 PM, D. via gnucash-user wrote:
Oh, I know about using the tax flag and TXF report. Done it for years. But
unless you figure out how to do what Mike has mentioned (consistently over the
years), if you flag these
if I don't pay up.
Original Message
From: Stan Brown
Sent: Wed Mar 16 20:32:51 EDT 2022
To: gnucash-user@gnucash.org
Subject: Re: [GNC] IRA/401K income detection
On 2022-03-16 15:09, D. via gnucash-user wrote:
> when Joe Retiree takes money from their IRA, the IRS consid
.
Original Message
From: Michael or Penny Novack
Sent: Wed Mar 16 19:10:50 EDT 2022
To: gnucash-user@gnucash.org
Subject: Re: [GNC] IRA/401K income detection
On 3/16/2022 6:09 PM, D. via gnucash-user wrote:
> Adrien,
>
> Overall, I think you're right, but I believ
On 2022-03-16 15:09, D. via gnucash-user wrote:
> when Joe Retiree takes money from their IRA, the IRS considers it income, and
> taxes it accordingly. But when Joe tries to enter the transfer from their IRA
> to their checking account in GnuCash, it doesn't get treated as income
--
Stan
to another.
Original Message
From: Adrien Monteleone
Sent: Wed Mar 16 19:20:57 EDT 2022
To: gnucash-u...@lists.gnucash.org
Subject: Re: [GNC] IRA/401K income detection
GnuCash also lets you mark accounts as tax implicated and you can I
think tie them to certain 'lines
GnuCash also lets you mark accounts as tax implicated and you can I
think tie them to certain 'lines' or certain 'forms'. That's used for
personal taxes as well.
I wasn't even thinking about the sales tax features for invoices/bills
which is something entirely separate.
If simply marking
On 3/16/2022 7:03 PM, Gyle McCollam wrote:
Michael has the right approach. Recording this when taking income involves 4
account. However, don't forget that if it is coming from a Roth IRA there is
no tax. 401K and Traditional IRA will involve a tax liability, but that is a
whole other
On 3/16/2022 6:09 PM, D. via gnucash-user wrote:
Adrien,
Overall, I think you're right, but I believe the tax features you're referring
to are used to calculate taxes for a business? The issue with deferred income--
and this has been true for as long as I can remember-- is that when Joe
income that they can track for taxes. That is a decidedly different tax issue
than the one you've mentioned, IMHO.
David T.
Original Message
From: Adrien Monteleone
Sent: Wed Mar 16 13:09:10 EDT 2022
To: gnucash-u...@lists.gnucash.org
Subject: Re: [GNC] IRA/401K income detection
I
. That is a decidedly different tax issue
than the one you've mentioned, IMHO.
David T.
Original Message
From: Adrien Monteleone
Sent: Wed Mar 16 13:09:10 EDT 2022
To: gnucash-u...@lists.gnucash.org
Subject: Re: [GNC] IRA/401K income detection
I could be missing something, but I
On 3/16/2022 10:48 AM, David G. Pickett via gnucash-user wrote:
OK, not anything like an accountant, so my books have just asset, liability,
income, expense. Equity might be a better place for the IRA/401K, since it is
an asset with a varying value and an attached tax liability TBD. So, how
I handle qualified plans with 3 generic transactions.
1. Contributions to plan: credit cash (if making a contribution from a bank
account) or wage income (if making the contribution directly from your
paycheck), debit to your plan
2. Gains to your plan. Unrealized gains should adjust the plan
I could be missing something, but I thought that was already covered by
one of the answers. Also, I'm pretty sure the proper place to record and
track that is in an Asset account, not Equity.
As for the transactions, if you need to do virtual 'extra tracking'
beyond just the physical
On 2022-03-16 07:48, David G. Pickett via gnucash-user wrote:
> Equity might be a better place for the IRA/401K, since it is an asset
If it's an asset (and I agree that it is), then I submit that Assets is
the best place for it!
--
Stan Brown
Tehachapi, CA, USA
https://BrownMath.com
OK, not anything like an accountant, so my books have just asset, liability,
income, expense. Equity might be a better place for the IRA/401K, since it is
an asset with a varying value and an attached tax liability TBD. So, how
should I have set up such 100% pretax deferred income accounts to
On 3/13/2022 10:28 PM, David G. Pickett via gnucash-user wrote:
I understand that one characteristic/weakness of the double entry system is
that you cannot tag a transfer with an income or expense account. Still,
accounting programs help prepare 1099R's, so there must be a way. Keeping
(Sorry—I clicked the wrong reply button.)
I’m not sure what you’re trying to accomplish. It sounds like you don’t want
your books to exaggerate how wealthy you are by ignoring the tax liability of
the transfer. When I transfer (withdraw) money from a tax-deferred retirement
account I usually
I understand that one characteristic/weakness of the double entry system is
that you cannot tag a transfer with an income or expense account. Still,
accounting programs help prepare 1099R's, so there must be a way. Keeping
deferred tax items a separate set of books would make income visible
On 2022-03-10 11:08, David G. Pickett via gnucash-user wrote:
> When I move money from an IRA or 401K account to my bank account and
the tax man, that is all a taxable distribution, but GNUCash mostly sees
a transfer. How do I capture the income?
> On 3/10/2022 2:15 PM, Stan Brown wrote:
>>
On 3/10/2022 2:15 PM, Stan Brown wrote:
If you make out a check to "cash" and cash it at the bank, is that
income? No, of course not. Your net worth is the same before and after
cashing that check.
The same is true of making a withdrawal from your IRA. Despite the fact
that the tax laws treat
I made a subaccount under the asset in which to record the distributions.
That subaccount is cleaned out each year by an adjusting transaction that
moves that to the main account. That way the balance sheet year end report
shows the yearly distribution amount. Makes it easy to pick off and send
On 2022-03-10 11:08, David G. Pickett via gnucash-user wrote:
> When I move money from an IRA or 401K account to my bank account and the tax
> man, that is all a taxable distribution, but GNUCash mostly sees a transfer.
> How do I capture the income?
If you make out a check to "cash" and cash
When I move money from an IRA or 401K account to my bank account and the tax
man, that is all a taxable distribution, but GNUCash mostly sees a transfer.
How do I capture the income?
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When I move money from an IRA or 401K account to my bank account and the tax
man, that is all a taxable distribution, but GNUCash mostly sees a transfer.
How do I capture the income?
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