The only interpretation I have of "He paid off the 600K loan by converting it into a 720K downpayment" is that the down payment was $120k above the fair market value of the loan. There might be some further complications with interest rates and pre-payment penalties, but none of that was mentioned. It would be 'easy' if there were a pre-payment penalty of $120k. Maybe that's considered interest where the loan was made, or maybe it deserves a separate category, but this sort of discussion requires additional information.
> On 03/31/2026 5:00 PM PDT David T. <[email protected]> wrote: > > > 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.
