>> 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? In my country it is a tax expense at the moment you sell shares of a mutual fund. You cannot compensate for it when filing your tax report even if you lose money in the future. It is gone. Government calls it "exclusive taxation". >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. That is not how it works here. If you sell, you pay at the time you sell. You cannot compensate for it afterwards. Just as a curiosity, in my jurisdiction you have to pay the tax when you sell and you have to pay tax semi-anually (if your mutual funds share price goes up you have to pay semi-anually even if you do not sell your shares). You cannot compensate for it either. The government accomplishes this by making the bank sell part of your shares to pay for this capital gain tax each semester (by this your average acquisition share price goes up and consequently your average returns go down). >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. I understand what you are saying but this does not apply here. >Michael D Novack On Thu, Sep 14, 2023 at 10:34 AM Gilberto Reis Filho <gilberto.reis.fi...@gmail.com> wrote: > > Yes, I know this works. I tried in two ways: > > 1. Record the tax split in the sell transaction directing it to the > mutual fund account (with shares and price recorded as zero) and then > recording a separate tax transaction in the mutual fund account (again > with both shares and price set to zero) directing it to the tax > expense account. > > 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. > > They both "work", however complexity is increased and that is > something I am trying to avoid in this scenario. I am just wondering > if there is a more "efficient" way to do this. > > Thank you all for the insights. > > Regards. > Gilberto. > > > > On Thu, Sep 14, 2023 at 12:18 AM <dev...@asia.com> wrote: > > > > Gilberto, > > > > Instead of recording the taxes directly in the account register for mutual > > fund, you have to perform an intermediate step, such as - > > > > In mutual fund register, record the gross sale value with appropriate > > income split for capital gain, but instead of transferring the sale > > proceeds directly to bank, place it in a temporary account, say $Cash. > > > > Now open the $Cash account register and make a transfer to your bank with > > the net proceeds after including a split for the tax deducted. > > > > This should fix your advanced portfolio report issue. > > > > Cheers. > > > > ------------------------------ > > > > Date: Wed, 13 Sep 2023 19:13:19 -0300 > > From: Gilberto Reis Filho <gilberto.reis.fi...@gmail.com> > > To: gnucash-user@gnucash.org > > Subject: [GNC] Advanced Portfolio Report - Brokerage Fees > > Message-ID: > > <cacuwpyyvjsp4vxb9h-mpiaoygnma7okjmckdgmjyumwelda...@mail.gmail.com> > > Content-Type: text/plain; charset="UTF-8" > > > > Hello. > > > > In my country whenever a person sells shares of a mutual fund the bank > > has to calculate and pay taxes, on behalf of the investor, on capital > > gains before making the funds avaliable to the investor. The investor > > receives the funds in the brokerage account liquid of taxes. > > > > I am recording these taxes in a split in the transaction where the > > shares sold are recorded, however doing this makes the advanced > > portfolio report recognize this tax as brokerage fees (well, they are > > not fees, but taxes). > > > > Is there any alternative to prevent this behavior and at the same time > > keep things simple preferably without having to create separate > > transactions? > > > > Thanks. > > Gilberto. _______________________________________________ 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.
