Maybe I'm dense, but I would characterize the 720k as a loan for purchase of real property, with a 600k payment transfered from your loan to them. If I'm not mistaken, that would zero out your loan to them, and leave you with 120k owing for the property.
David T. On March 31, 2026 4:46:28 PM PDT, Patrick James via gnucash-user <[email protected]> wrote: >This is clearly an accounting question more than a GnuCash question. > >Always consult with an accounting professional if it could make a difference >in your future. > >One approach might be the historic costing principle suggests that you won't >record the $120k until you sell. > >Another approach, and this one is very questionable, would be that he paid you >back $720k when he only owed $600k. No rational person would do this. > >This reminds me of people who get "large" valuations on their old cars when >buying a new one. The value of the old junk is increased by $120k and price of >the new car is increased by $120k. > > >> On 03/31/2026 4:08 PM PDT Fred Tydeman <[email protected]> wrote: >> >> >> In a foreign country, I had loaned a developer 600K of their currency. >> He had been making interest only payments for some time. >> He paid off the 600K loan by converting it into a 720K downpayment on >> the loan (I now have from him) to buy an apartment he will build for me. >> What is the 120K difference? How do I record it? >> _______________________________________________ >> 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. David T. _______________________________________________ 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.
