Re: [GNC] Company plan for stocks and stock options
The whole bucket of deferred compensation is really complicated and how you account for it is tied up in tax law. If the value of the options, stock plan, retirement plan subsidies, and whatever else is large enough to matter to your tax returns you really, really need the help of a licensed accountant with direct experience with the types of deferred compensation you get. Ask your colleagues for recommendations. Regards, John Ralls > On Apr 4, 2023, at 11:14 AM, Murugan Muruganandam > wrote: > > Employee stock options are normally not taxed until the vesting is done. > Restricted Stock Units (RSU) has a different mechanism though > > What is your objective of this accounting? if you can detail then there are > couple of ways to account for the same > > > > > Saludos Cordiales > > > Murugan > > > From: gnucash-user > on behalf of > Stan Brown > Sent: Tuesday, April 4, 2023 2:06 PM > To: gnucash-user@gnucash.org > Subject: Re: [GNC] Company plan for stocks and stock options > > > On 2023-04-04 10:40, Wolfgang Paul Rauchholz wrote: >> Fairly new to gnucash and not a finance export, I want to run all my >> personal finances with this great tool. >> >> I installed 5.0 by compiling it under fedora core 37. >> >> I started adding normal daily expenses and all look fine. >> >> One of the doubts I have is how do I correctly add a company plan for stock >> options and stock plan that get vested/distributed every year. As I don't >> buy them there is no cash leaving my bank account. > > The options and stocks are part of your compensation as an employee, > right? As such, the accounting would be similar to your accounting for > your paycheck. > > Your paycheck (ignoring tax withholding) is >Debit: Cash or Bank account >Credit: Employee income > > The stocks would be >Debit: Stock in Company X >Credit: Employee income > and similarly for the options. With stocks and options you'll want to > know number of shares and share prices so that you can compute gains and > losses when you sell them. If they aren't fully vested you will want to > note the vesting date as well. > > You'll probably want to have separate accounts for stocks in the company > and stock options. To simplify computing your income tax, you may want > to have separate income accounts for income in money and income in > securities; they could both be subaccounts under an Employee Income account. > > The usual disclaimer: I don't know your tax situation or any legal > requirements for how you may need to account for all of this. > > Stan Brown > Tehachapi, CA, USA > https://BrownMath.com > ___ > 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. > ___ > 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. ___ 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.
Re: [GNC] Company plan for stocks and stock options
Employee stock options are normally not taxed until the vesting is done. Restricted Stock Units (RSU) has a different mechanism though What is your objective of this accounting? if you can detail then there are couple of ways to account for the same Saludos Cordiales Murugan From: gnucash-user on behalf of Stan Brown Sent: Tuesday, April 4, 2023 2:06 PM To: gnucash-user@gnucash.org Subject: Re: [GNC] Company plan for stocks and stock options On 2023-04-04 10:40, Wolfgang Paul Rauchholz wrote: > Fairly new to gnucash and not a finance export, I want to run all my > personal finances with this great tool. > > I installed 5.0 by compiling it under fedora core 37. > > I started adding normal daily expenses and all look fine. > > One of the doubts I have is how do I correctly add a company plan for stock > options and stock plan that get vested/distributed every year. As I don't > buy them there is no cash leaving my bank account. The options and stocks are part of your compensation as an employee, right? As such, the accounting would be similar to your accounting for your paycheck. Your paycheck (ignoring tax withholding) is Debit: Cash or Bank account Credit: Employee income The stocks would be Debit: Stock in Company X Credit: Employee income and similarly for the options. With stocks and options you'll want to know number of shares and share prices so that you can compute gains and losses when you sell them. If they aren't fully vested you will want to note the vesting date as well. You'll probably want to have separate accounts for stocks in the company and stock options. To simplify computing your income tax, you may want to have separate income accounts for income in money and income in securities; they could both be subaccounts under an Employee Income account. The usual disclaimer: I don't know your tax situation or any legal requirements for how you may need to account for all of this. Stan Brown Tehachapi, CA, USA https://BrownMath.com ___ 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. ___ 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.
Re: [GNC] Company plan for stocks and stock options
On 2023-04-04 10:40, Wolfgang Paul Rauchholz wrote: > Fairly new to gnucash and not a finance export, I want to run all my > personal finances with this great tool. > > I installed 5.0 by compiling it under fedora core 37. > > I started adding normal daily expenses and all look fine. > > One of the doubts I have is how do I correctly add a company plan for stock > options and stock plan that get vested/distributed every year. As I don't > buy them there is no cash leaving my bank account. The options and stocks are part of your compensation as an employee, right? As such, the accounting would be similar to your accounting for your paycheck. Your paycheck (ignoring tax withholding) is Debit: Cash or Bank account Credit: Employee income The stocks would be Debit: Stock in Company X Credit: Employee income and similarly for the options. With stocks and options you'll want to know number of shares and share prices so that you can compute gains and losses when you sell them. If they aren't fully vested you will want to note the vesting date as well. You'll probably want to have separate accounts for stocks in the company and stock options. To simplify computing your income tax, you may want to have separate income accounts for income in money and income in securities; they could both be subaccounts under an Employee Income account. The usual disclaimer: I don't know your tax situation or any legal requirements for how you may need to account for all of this. Stan Brown Tehachapi, CA, USA https://BrownMath.com ___ 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.
[GNC] Company plan for stocks and stock options
Fairly new to gnucash and not a finance export, I want to run all my personal finances with this great tool. I installed 5.0 by compiling it under fedora core 37. I started adding normal daily expenses and all look fine. One of the doubts I have is how do I correctly add a company plan for stock options and stock plan that get vested/distributed every year. As I don't buy them there is no cash leaving my bank account. Thanks, Wolfgang ___ 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.
Re: [GNC] Security timezone
On Tue, Apr 4, 2023 at 7:03 AM john wrote: > Nope. Whoever implemented that 20 years ago didn't hook it up to anything > and nobody has since. Maybe because the implementation itself isn't very > useful. It's saved as a string, and only "Asia/Tokyo", "Australia/Sydney", > "America/New_York", "America/Chicago", "Europe/London", or "Europe/Paris" > are available. To apply it to a time would require conversion to a > gmtoffset. > > But once you had that what would you do with it? Quotes almost never have > a time on them. I guess you could apply a rule that says that if right now > is between 0900 and 1600 on the indicated date (quotes do usually have > dates) in the security's time zone then that's the time of the quote, > otherwise it's 1600 in that timezone on the indicated date. The quote > display would have to be tz-sensitive too. I'm not at all convinced that > doing all of that would materially improve anything, and implementing it > would be a lot of work. > Would it be correct and helpful if Currently, the timezone setting is ignored were added to the Investment section on creating a new security in the Gnucash Guide? ___ 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.
