How to account for a house purchase

classic Classic list List threaded Threaded
6 messages Options
Reply | Threaded
Open this post in threaded view
|

How to account for a house purchase

Tony Vanson
Hi all,
Hopefully someone can point me in the right direction on how to account for a house purchase in GNUCash.
I have contracted to buy a house and have paid a 10% deposit from my bank account, with the remainder becoming due within 2 months. I understand that the deposit amount is a debit against my bank account but I have no idea what the corresponding  double-entry should be. I assume when this purchase is completed it will be an asset?
Regards


Sent from Mail for Windows 10



---
This email has been checked for viruses by Avast antivirus software.
https://www.avast.com/antivirus
_______________________________________________
gnucash-user mailing list
[hidden email]
To update your subscription preferences or to unsubscribe:
https://lists.gnucash.org/mailman/listinfo/gnucash-user
If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information.
-----
Please remember to CC this list on all your replies.
You can do this by using Reply-To-List or Reply-All.
Reply | Threaded
Open this post in threaded view
|

Re: How to account for a house purchase

Robert Heller
At Sat, 17 Feb 2018 21:31:54 +0700 Tony Vanson <[hidden email]> wrote:

>
> Hi all,
> Hopefully someone can point me in the right direction on how to account for a house purchase in GNUCash.
> I have contracted to buy a house and have paid a 10% deposit from my bank account, with the remainder becoming due within 2 months. I understand that the deposit amount is a debit against my bank account but I have no idea what the corresponding  double-entry should be. I assume when this purchase is completed it will be an asset?
> Regards

How about Assets:House ?

>
>
> Sent from Mail for Windows 10
>
>
>
> ---
> This email has been checked for viruses by Avast antivirus software.
> https://www.avast.com/antivirus
> _______________________________________________
> gnucash-user mailing list
> [hidden email]
> To update your subscription preferences or to unsubscribe:
> https://lists.gnucash.org/mailman/listinfo/gnucash-user
> If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information.
> -----
> Please remember to CC this list on all your replies.
> You can do this by using Reply-To-List or Reply-All.
>
>                                            

--
Robert Heller             -- 978-544-6933
Deepwoods Software        -- Custom Software Services
http://www.deepsoft.com/  -- Linux Administration Services
[hidden email]       -- Webhosting Services
                                                                 
_______________________________________________
gnucash-user mailing list
[hidden email]
To update your subscription preferences or to unsubscribe:
https://lists.gnucash.org/mailman/listinfo/gnucash-user
If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information.
-----
Please remember to CC this list on all your replies.
You can do this by using Reply-To-List or Reply-All.
Robert Heller                      -- 978-544-6933
Deepwoods Software        -- Download the Model Railroad System
http://www.deepsoft.com/  -- Binaries for Linux and MS-Windows
heller@deepsoft.com        -- http://www.deepsoft.com/ModelRailroadSystem/
Reply | Threaded
Open this post in threaded view
|

Re: How to account for a house purchase

R. Victor Klassen
Or Assets:Fixed Assets:House - if you distinguish between fixed assets and current assets.

And yes, it is already an asset.  If the purchase should fall through and you get your deposit back the asset goes away and the money goes in your bank account.  Otherwise, it’s part of the cost basis for the house.  Presumably, you get to create

Liabilities:Mortgage

as the source for part of the remainder.  

> On Feb 17, 2018, at 9:56 AM, Robert Heller <[hidden email]> wrote:
>
> At Sat, 17 Feb 2018 21:31:54 +0700 Tony Vanson <[hidden email] <mailto:[hidden email]>> wrote:
>
>>
>> Hi all,
>> Hopefully someone can point me in the right direction on how to account for a house purchase in GNUCash.
>> I have contracted to buy a house and have paid a 10% deposit from my bank account, with the remainder becoming due within 2 months. I understand that the deposit amount is a debit against my bank account but I have no idea what the corresponding  double-entry should be. I assume when this purchase is completed it will be an asset?
>> Regards
>
> How about Assets:House ?
>
>>
>>
>> Sent from Mail for Windows 10
>>
>>
>>
>> ---
>> This email has been checked for viruses by Avast antivirus software.
>> https://www.avast.com/antivirus
>> _______________________________________________
>> gnucash-user mailing list
>> [hidden email]
>> To update your subscription preferences or to unsubscribe:
>> https://lists.gnucash.org/mailman/listinfo/gnucash-user
>> If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information.
>> -----
>> Please remember to CC this list on all your replies.
>> You can do this by using Reply-To-List or Reply-All.
>>
>>
>
> --
> Robert Heller             -- 978-544-6933
> Deepwoods Software        -- Custom Software Services
> http://www.deepsoft.com/ <http://www.deepsoft.com/>  -- Linux Administration Services
> [hidden email] <mailto:[hidden email]>       -- Webhosting Services
>
> _______________________________________________
> gnucash-user mailing list
> [hidden email] <mailto:[hidden email]>
> To update your subscription preferences or to unsubscribe:
> https://lists.gnucash.org/mailman/listinfo/gnucash-user <https://lists.gnucash.org/mailman/listinfo/gnucash-user>
> If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists <https://wiki.gnucash.org/wiki/Mailing_Lists> for more information.
> -----
> 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
[hidden email]
To update your subscription preferences or to unsubscribe:
https://lists.gnucash.org/mailman/listinfo/gnucash-user
If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information.
-----
Please remember to CC this list on all your replies.
You can do this by using Reply-To-List or Reply-All.
Reply | Threaded
Open this post in threaded view
|

Re: How to account for a house purchase

Ronal B Morse-2
In reply to this post by Robert Heller
That's what I did. I also had to set up a corresponding liability
account for the mortgage, but that's a separate issue.

I wasn't sure if I should use the purchase price or the appraised value
as the value of the asset, but since I do everything else on a cash
basis, I decided to use the cash price.  That does have some impact on
net worth calculations, but I'll live with that.

RBM


On 02/17/2018 07:56 AM, Robert Heller wrote:

> At Sat, 17 Feb 2018 21:31:54 +0700 Tony Vanson <[hidden email]> wrote:
>
>> Hi all,
>> Hopefully someone can point me in the right direction on how to account for a house purchase in GNUCash.
>> I have contracted to buy a house and have paid a 10% deposit from my bank account, with the remainder becoming due within 2 months. I understand that the deposit amount is a debit against my bank account but I have no idea what the corresponding  double-entry should be. I assume when this purchase is completed it will be an asset?
>> Regards
> How about Assets:House ?
>
>>
>> Sent from Mail for Windows 10
>>
>>
>>
>> ---
>> This email has been checked for viruses by Avast antivirus software.
>> https://www.avast.com/antivirus
>> _______________________________________________
>> gnucash-user mailing list
>> [hidden email]
>> To update your subscription preferences or to unsubscribe:
>> https://lists.gnucash.org/mailman/listinfo/gnucash-user
>> If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information.
>> -----
>> 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
[hidden email]
To update your subscription preferences or to unsubscribe:
https://lists.gnucash.org/mailman/listinfo/gnucash-user
If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information.
-----
Please remember to CC this list on all your replies.
You can do this by using Reply-To-List or Reply-All.
Reply | Threaded
Open this post in threaded view
|

Re: How to account for a house purchase

John Ralls-2
Ron,

You made the right choice. Barring a price-to-market accounting requirement that never applies to individuals, the book value is what you actually paid. When you get around to selling you’ll get taxed on the difference between the net selling price and that purchase price.

If you want to see the “funny money” of market value you can create a “house” security and make Assets:House contain one of them, purchased at the price on the contract. Then you can get updated market price estimates and put them in the pricedb. The supposed market value will then show up on the Accounts page and in various reports.

Regards,
John Ralls

> On Feb 17, 2018, at 9:01 AM, Ronal B Morse <[hidden email]> wrote:
>
> That's what I did. I also had to set up a corresponding liability account for the mortgage, but that's a separate issue.
>
> I wasn't sure if I should use the purchase price or the appraised value as the value of the asset, but since I do everything else on a cash basis, I decided to use the cash price.  That does have some impact on net worth calculations, but I'll live with that.
>
> RBM
>
>
> On 02/17/2018 07:56 AM, Robert Heller wrote:
>> At Sat, 17 Feb 2018 21:31:54 +0700 Tony Vanson <[hidden email]> wrote:
>>
>>> Hi all,
>>> Hopefully someone can point me in the right direction on how to account for a house purchase in GNUCash.
>>> I have contracted to buy a house and have paid a 10% deposit from my bank account, with the remainder becoming due within 2 months. I understand that the deposit amount is a debit against my bank account but I have no idea what the corresponding  double-entry should be. I assume when this purchase is completed it will be an asset?
>>> Regards
>> How about Assets:House ?
>>
>>>
>>> Sent from Mail for Windows 10
>>>
>>>
>>>
>>> ---
>>> This email has been checked for viruses by Avast antivirus software.
>>> https://www.avast.com/antivirus
>>> _______________________________________________
>>> gnucash-user mailing list
>>> [hidden email]
>>> To update your subscription preferences or to unsubscribe:
>>> https://lists.gnucash.org/mailman/listinfo/gnucash-user
>>> If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information.
>>> -----
>>> 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
> [hidden email]
> To update your subscription preferences or to unsubscribe:
> https://lists.gnucash.org/mailman/listinfo/gnucash-user
> If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information.
> -----
> 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
[hidden email]
To update your subscription preferences or to unsubscribe:
https://lists.gnucash.org/mailman/listinfo/gnucash-user
If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information.
-----
Please remember to CC this list on all your replies.
You can do this by using Reply-To-List or Reply-All.
Reply | Threaded
Open this post in threaded view
|

Re: How to account for a house purchase

Tony Vanson
Thank you all for your quick and useful advice. Cheers

<https://www.avast.com/sig-email?utm_medium=email&utm_source=link&utm_campaign=sig-email&utm_content=webmail>
Virus-free.
www.avast.com
<https://www.avast.com/sig-email?utm_medium=email&utm_source=link&utm_campaign=sig-email&utm_content=webmail>
<#DAB4FAD8-2DD7-40BB-A1B8-4E2AA1F9FDF2>

On Sun, Feb 18, 2018 at 12:53 AM, John Ralls <[hidden email]> wrote:

> Ron,
>
> You made the right choice. Barring a price-to-market accounting
> requirement that never applies to individuals, the book value is what you
> actually paid. When you get around to selling you’ll get taxed on the
> difference between the net selling price and that purchase price.
>
> If you want to see the “funny money” of market value you can create a
> “house” security and make Assets:House contain one of them, purchased at
> the price on the contract. Then you can get updated market price estimates
> and put them in the pricedb. The supposed market value will then show up on
> the Accounts page and in various reports.
>
> Regards,
> John Ralls
>
> > On Feb 17, 2018, at 9:01 AM, Ronal B Morse <[hidden email]> wrote:
> >
> > That's what I did. I also had to set up a corresponding liability
> account for the mortgage, but that's a separate issue.
> >
> > I wasn't sure if I should use the purchase price or the appraised value
> as the value of the asset, but since I do everything else on a cash basis,
> I decided to use the cash price.  That does have some impact on net worth
> calculations, but I'll live with that.
> >
> > RBM
> >
> >
> > On 02/17/2018 07:56 AM, Robert Heller wrote:
> >> At Sat, 17 Feb 2018 21:31:54 +0700 Tony Vanson <[hidden email]>
> wrote:
> >>
> >>> Hi all,
> >>> Hopefully someone can point me in the right direction on how to
> account for a house purchase in GNUCash.
> >>> I have contracted to buy a house and have paid a 10% deposit from my
> bank account, with the remainder becoming due within 2 months. I understand
> that the deposit amount is a debit against my bank account but I have no
> idea what the corresponding  double-entry should be. I assume when this
> purchase is completed it will be an asset?
> >>> Regards
> >> How about Assets:House ?
> >>
> >>>
> >>> Sent from Mail for Windows 10
> >>>
> >>>
> >>>
> >>> ---
> >>> This email has been checked for viruses by Avast antivirus software.
> >>> https://www.avast.com/antivirus
> >>> _______________________________________________
> >>> gnucash-user mailing list
> >>> [hidden email]
> >>> To update your subscription preferences or to unsubscribe:
> >>> https://lists.gnucash.org/mailman/listinfo/gnucash-user
> >>> If you are using Nabble or Gmane, please see
> https://wiki.gnucash.org/wiki/Mailing_Lists for more information.
> >>> -----
> >>> 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
> > [hidden email]
> > To update your subscription preferences or to unsubscribe:
> > https://lists.gnucash.org/mailman/listinfo/gnucash-user
> > If you are using Nabble or Gmane, please see
> https://wiki.gnucash.org/wiki/Mailing_Lists for more information.
> > -----
> > 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
> [hidden email]
> To update your subscription preferences or to unsubscribe:
> https://lists.gnucash.org/mailman/listinfo/gnucash-user
> If you are using Nabble or Gmane, please see
> https://wiki.gnucash.org/wiki/Mailing_Lists for more information.
> -----
> Please remember to CC this list on all your replies.
> You can do this by using Reply-To-List or Reply-All.
>



--
*Tony Vanson*

*The older I get,*
*the better I was*
_______________________________________________
gnucash-user mailing list
[hidden email]
To update your subscription preferences or to unsubscribe:
https://lists.gnucash.org/mailman/listinfo/gnucash-user
If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information.
-----
Please remember to CC this list on all your replies.
You can do this by using Reply-To-List or Reply-All.