Hi Christopher,
I just wanted to confirm to you that the purpose of this Asset account
is strictly to track the current value of my home. It's so that I have
at least an approximation of my overall Equity (total assets minus
liabilities). And I do understand the difference between the home's
current value and my cost basis in it (which is much much less from many
years ago). No worries. I track the cost basis as well; but separately.
Tom
On 9/15/2025 8:49 PM, Christopher Lam wrote:
Replying to myself. GAAP and IFRS both seem to favour historical cost
accounting.
On Tue, 16 Sept 2025, 9:39 am Christopher Lam, <[email protected]>
wrote:
I can offer yet another opinion...
I wouldn't record unrealised gains as Equity transfers. A house purchased
for $40k in 1976 would enjoy increasing values via period transfers from
equity; and if the up-to-date valuation is $800k, and you sell today,
you'll be recording a negligible capital gain. It is in my view that
appreciating assets are best recorded as purchase price and left alone
until the sale, then a large capital gain is recorded as income.
I would however unrealised losses as periodic expenses. A car purchased
for $30k in 2020 and depreciates annually, and I may claim partially as a
tax deduction.
IANAA of course.
C
On Tue, 16 Sept 2025 at 09:02, Tom Route-36 <[email protected]> wrote:
Hi all,
I wanted to reply to all of you here who jumped in with your advice and
comments. I think I understand the proper way to handle this now. And
it seems pretty simple and straightforward too thanks to all your
feedback. To keep things recorded properly I just need to create a new
Equity account (named Unrealized Appreciation or something similar).
And then for each valuation change entry in my Asset account (MyHome) I
put a corresponding entry in that new Equity account to balance things.
Really simple now that I look back on my question. Anyway, thanks again
to everybody.
Tom
On 9/15/2025 4:30 PM, David Warren wrote:
Most accountants will tell you to credit equity for unrealized
appreciation
in your assets.
But if you are doing your own books, it's really your choice in terms of
what types of reports you want to see and how you want to use.
Sometimes I
credit income accounts for unrealized appreciation because it makes it
easier for me to track how a certain asset account has grown or shrunk
year
by year and what types of income (realized, unrealized, taxable or not
yet
taxed) it has thrown off. When the income is eventually realized I
credit
realized income and debit unrealized income, which works for me. But
it's
really a matter of how you want things to work for you.
On Mon, Sep 15, 2025, 5:03 PM Kalpesh Patel <[email protected]>
wrote:
I've done something similar.
I've created a sub-account called "Appreciation" underneath the real
estate
asset holding account, and then I add the valuation transaction as
noted in
the appraisal report in "Appreciation" against "Retained Earnings"
underneath "Equity".
-----Original Message-----
From: Murugan Mariappan <[email protected]>
Sent: Monday, September 15, 2025 8:49 AM
To: [email protected]; Harold Hallikainen <
[email protected]>
Subject: Re: [GNC] How to Properly Record Valuation Changes in Home
Value?
Revlaution suplus / deficit should be treated as non P&L items, so
best way
to is to create a Revaluation Account under Equity and pass the
entries for
example
Dr Assets:Building (PPE) $100,000
Cr Equity: Revaluation Account $100,000
If there is a loss then it will be in the reverse for example
Cr Assets:Building (PPE) $50,000
Dr Equity: Revaluation Account $50,000
Saludos Cordiales
Murugan
________________________________
From: gnucash-user
<[email protected]> on
behalf of
Harold Hallikainen via gnucash-user <[email protected]>
Sent: 15 September 2025 00:03
To: [email protected] <[email protected]>
Subject: Re: [GNC] How to Properly Record Valuation Changes in Home
Value?
I'd be tempted to have two subaccounts in the MyHome asset. These
would be
Purchase Price and Unrealized Appreciation. Then have an income account
called Unrealized Income.
Harold
On Sun, September 14, 2025 7:57 pm, Tom Route-36 wrote:
Hi all,
This is more of a double entry bookkeeping question rather than
something specific to GnuCash; but I'd appreciate any input on the
proper way to do this. I'm tracking the valuation changes of my
personal home based on notices that I get every 2 years from the
County Assessor. When I was using Quicken, I did this in a single
account (named MyHome). The opening balance of MyHome was my original
purchase price. And then every 2 years as I got updated valuation
notices, I'd record a transaction back into that same MyHome account
(since Quicken would let me do that) to adjust the MyHome account
balance to make it match the current value listed on the County
Assessor's
notice.
Now that I'm using GnuCash and having to do things properly with
double entry accounting, I was wondering how to go back and fix
things. I know I still want an Asset account for MyHome to track the
valuation. But for DE accounting, what should I be using for that
corresponding second account to balance things out as the valuation
changes?
Tom
_______________________________________________
gnucash-user mailing list [email protected] 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.
--
Not sent from an iPhone.
_______________________________________________
gnucash-user mailing list
[email protected]
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.
_______________________________________________
gnucash-user mailing list
[email protected]
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.
_______________________________________________
gnucash-user mailing list
[email protected]
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.
_______________________________________________
gnucash-user mailing list
[email protected]
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.
_______________________________________________
gnucash-user mailing list
[email protected]
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.
_______________________________________________
gnucash-user mailing list
[email protected]
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.
