2. Record the tax split in the sell transaction directing it to a transitory asset account and then recording a separate tax transaction in the transitory account directing it to the tax expense account.
No, it not YET a "tax expense" but an asset. Maybe confused because both debit?
Only when you file your taxes determining the total tax you owe can you tell what it will become. If the total amount held in all of the "tax withheld" amounts is greater than the tax owed, part of that will become "tax expense" and some refunded to you. If you have severe losses later in the year maybe you get all of this back.
Think of that money as being held in escrow by the government for the purpose of paying taxes that MIGHT be due. In other words, they have that much in hand against what you might end up owing and guaranteed not having to try to collect it from you later at tax filing/tax due time.
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 ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
