On Sat, Jun 19, 2021 at 9:36 AM Peter <[email protected]> wrote:
> Hi,
>
> aren't expenses payable "immediately" and liabilities owed for a later
> time? That's why I booked it into a liabilities account, because the taxes
> are due at the end of the year.
>
>
Liabilities can be payable immediately or at a later time. The expense
occurs whenever the unconditional obligation to pay is created. So in the
case of capital gains tax, the expense occurs whenever you sell the asset
and realize the gains. It's true that you don't usually need to pay the
taxes until the end of the year, but that's what the liability represents.
When you eventually pay the taxes, no new expense occurs, it just reduces
both your cash and the liability at the same time.
So I would do:
2021-06-18 * "" "Harvesting farmed crypto"
Assets:Crypto:Wallet:Polygon:Ledger-X:Staking:VERT 0.675055007246049347 VERT
{42.138 USD} @ 42.138 USD
Liabilities:Taxes:Crypto -11.95 USD
Expenses:Taxes:Crypto 11.95 USD
Income:Crypto:Farming:Polygon:VERT
And then at the end of the year when you pay your taxes:
2022-04-15 * "Uncle Sam" "Paid taxes"
Assets:Cash -11.95 USD
Liabilities:Taxes:Crypto 11.95 USD
Of course, when you file your tax return, you might find out that the tax
liability disappears some other way, e.g., it nets out with other tax
you've overpaid and you actually get back a refund, etc.
But anyway the essential point is that under the usual rules of accounting,
the expense is recorded at the moment that the obligation is created, not
necessarily when the actual transfer of funds occurs.
Matt
> [email protected] schrieb am Samstag, 19. Juni 2021 um 13:26:04 UTC+2:
>
>> Hi,
>>
>> I think you're missing the expenses account for taxes. What you move to
>> liabilities should be balanced by a tax expenses account.
>>
>> Regards,
>> Patrick
>>
>>
>> On June 19, 2021 12:57:20 PM GMT+02:00, Peter <[email protected]>
>> wrote:
>>>
>>> Hi,
>>>
>>> How do I book taxes that have to be paid due to capital income, but will
>>> only be due in the future?
>>>
>>> Let's take this posting as an example:
>>>
>>> ```
>>> 2021-06-18 * "" "Harvesting farmed crypto"
>>> Assets:Crypto:Wallet:Polygon:Ledger-X:Staking:VERT
>>> 0.675055007246049347 VERT {42.138 USD} @ 42.138 USD
>>> Income:Crypto:Farming:Polygon:VERT
>>> ```
>>>
>>> This makes me 28.45 USD in capital gains. I'd probably have to pay a
>>> whopping 42% in taxes. That equals to 11.95 USD. I'd like to keep track of
>>> the amount of taxes which will be due at the end of the year—to avoid a bad
>>> surprise. How do I do that?
>>> I tried:
>>>
>>> ```
>>> 2021-06-18 * "" "Harvesting farmed crypto"
>>>
>>> Assets:Crypto:Wallet:Polygon:Ledger-X:Staking:VERT 0.675055007246049347 VERT
>>> {42.138 USD} @ 42.138 USD
>>> Liablities:Taxes:Crypto -11.95 USD
>>> Income:Crypto:Farming:Polygon:VERT
>>> ```
>>>
>>> But bean-doctor tells me that just 16.50 USD get booked into the income
>>> account. This seems wrong to me from a bookkeeping point of view, because
>>> the income is still 28.45. How do I book that correctly?
>>>
>>> --
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