[kmymoney] [Bug 392755] kmymoney-4.8.1.1 suggestion: Category for realized profit/loss of an investment

[Jack via KMyMoney-devel]

https://bugs.kde.org/show_bug.cgi?id=392755

Jack  changed:

   What|Removed |Added

 Resolution|WAITINGFORINFO  |---
   Severity|normal  |wishlist
 Status|NEEDSINFO   |REPORTED

--- Comment #9 from Jack  ---
I'm changing this to a wishlist, and marking REPORTED, as it can provide input
to the eventual rework on Investments.  It seems unlikely that profits (capital
gains) can be represented as a Category, since categories provide a label for
money coming into or going out of an account.  Selling an equity/stock is just
exchanging some shares of that equity in one account for cash in a brokerage
account.  Recognition and tracking/reporting of capital gains/losses will
require a significant enhancement to how ownership of equities is actually
handled within Investment accounts.

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[kmymoney] [Bug 392755] kmymoney-4.8.1.1 suggestion: Category for realized profit/loss of an investment

[Justin Zobel via KMyMoney-devel]

https://bugs.kde.org/show_bug.cgi?id=392755

Justin Zobel  changed:

   What|Removed |Added

 Resolution|--- |WAITINGFORINFO
 Status|REPORTED|NEEDSINFO

--- Comment #8 from Justin Zobel  ---
Thank you for reporting this issue in KDE software. As it has been a while
since this issue was reported, can we please ask you to see if you can
reproduce the issue with a recent software version?

If you can reproduce the issue, please change the status to "REPORTED" when
replying. Thank you!

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[kmymoney] [Bug 392755] kmymoney-4.8.1.1 suggestion: Category for realized profit/loss of an investment

[Christian]

https://bugs.kde.org/show_bug.cgi?id=392755

--- Comment #7 from Christian  ---
See bug 393204 for a related wish for enhancement concerning the overall
profits/losses associated with an equity. The suggestion of the present bug
concerns individual transactions, but there is some overlap to the other bug.

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[kmymoney] [Bug 392755] kmymoney-4.8.1.1 suggestion: Category for realized profit/loss of an investment

[Christian]

https://bugs.kde.org/show_bug.cgi?id=392755

--- Comment #6 from Christian  ---
The solution suggested by mahueb55 is a good one. It can be implemented in two
steps:
1. Add the possibility to configure a category for "gain/loss" - whether
globally, per investment account, or per security can be discussed.
2. Decide how to calculate the profit/loss automatically and implement that.
(This could be optional or replace a temporary solution of entering this value
manually.)

There is the possibility of entering inconsistent values if they are entered
manually and (2) is not implemented. But to me this doesn't pose a problem as
the current method (which would be equivalent to having a 0 profit/loss always)
seems to be inconsistent in the same way.

Another reason why it would be good to have the realized profit/loss in a
category is that some taxes are calculated on it (e.g., "capital gains tax").

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[kmymoney] [Bug 392755] kmymoney-4.8.1.1 suggestion: Category for realized profit/loss of an investment

[bugzilla_noreply]

https://bugs.kde.org/show_bug.cgi?id=392755

mahue...@gmail.com changed:

   What|Removed |Added

 CC||mahue...@gmail.com

--- Comment #5 from mahue...@gmail.com ---
While I understand the issue and do agree that the profits should show as an
income category (and losses as expense, accordingly) I am not sure whether I
agree with the requested solution. The example no. 2 Christian gave is ONE way
to value inventory (of securities, in that case) - FIFO, but it is certainly
not the only one. Who says that the 5 shares that were sold on 2018-01-01 are
the ones bought in 2016?

>From my point of view, the ideal target situation is:
- add the possibility to configure the valuation method (LIFO, FIFO, AVG, ?)
per security
- add the possibility to configure a category for  "gain/loss from sale of
securities" (or one category for gains and a separate one for losses) -
globally, per investment account or per security (to be discussed)
- then, when posting the sell transaction, derive the net gain or loss incurred
through the sales transaction automatically based on the configured valuation
method and
- automatically split the transaction and assign the gain/loss fraction of the
transaction to the category configured above.

That way, we're ensuring consistency. If we manually entered the gain or loss
instead we could end up with inconsistencies pretty fast because we would not
be able to guarantee that (buy transaction value) + (manually entered
gain/loss) = (sell transaction value). Or am I missing something?

Sidenote: It probably makes sense not to allow changes of the valuation method
as long as there is any nonzero number of shares of that security on our books
because past transactions would need to be revaluated in order to arrive at
correct & consistent values otherwise.

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[kmymoney] [Bug 392755] kmymoney-4.8.1.1 suggestion: Category for realized profit/loss of an investment

[NSLW]

https://bugs.kde.org/show_bug.cgi?id=392755

--- Comment #3 from NSLW  ---
I don't know why you desperately need it as category, but you can have your
profits and losses reported as performance report. There you have some
predefined options to count your profits.

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