9:46am -0000 06/07/26 Fred Tydeman <[email protected]> wrote: >In looking at the transactions, it is due to the way I entered my >Required Minimum Distribution (RMD) for my Regular IRA. >There are the two normal splits of: > selling some shares and > putting the proceeds into an asset account (bank).
>I wanted by RMD to show up as taxable income, so I added two >more splits of: > Income account (IRA distribution) > Expense account (dummy to balance that income). RMD is a liability, not an expense. When RMD for the next tax year becomes known, enter it as a liability, not an expense. The distribution itself is an asset transfer to your checking account. With each distribution, credit your RMD income account and debit the RMD liability account till that's zeroed out. I suppose if you take a distribution in excess of RMD, you'll debit equity. Do you withhold from RMD? Then instead of the asset transfer, debit the IRA asset and credit the income tax expense account. With each tax payment, you decrease the tax liability, and that can be offset from equity. The tax liability won't be known till the tax return is prepared. I date the tax liability December 31 since I'm not trying to do quarterly tax estimate liabilities. _______________________________________________ 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.
