On 11/20/2019 1:13 PM, Mark Phillips wrote:
A PS to my last email about the mortgage accounts. My gnucash accounts are
for my financial tracking purposes only. My accountant gets bank statements
and other original documents for tax purposes. He has nothing to do with my
gnucash accounts, and is not interested in seeing them.
Just in case my earlier email sounded like I was laundering money or doing
something to cheat the IRS! Or, maybe I have been watching too many
episodes of the Black List....
These are no (actually) gnucash questions as you would have exactly the
same questions were you using old fashioned pen and ink on paper.
Add the proviso that I am NOT qualified as an accountant (but do know
some things)
You were told "enter the building at its current value". That is wrong.
You enter the BASIS (what you paid for it) plus any expenditures that
qualify as CAPITAL IMPROVEMENTS (consult your accountant -- but I think
you will find things like new heating system, new roof, etc. ). The
reason for this is that if/when you dispose of this asset, hopefully for
a profit, the amount of CAPITAL GAIN will be clear (taxed at a different
rate than ordinary income).
The loan you enter at its current balance.
The opposite side of these transactions would be equity. When opening
new books you can have a whole bunch of individual transactions, or two
(big) splits, one for equity debits and one for equity credits, or one
giant split on both sides (I do NOT recommend this if inexperienced with
gnucash, OR you can use the "starting balance" feature (but I never do
that).
Michael D Novack
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