Setup for cashback bonus

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Setup for cashback bonus

txtinman
I was wondering how best to setup Gnucash for credit card cash back bonus refunds. When I tried to list it as a payment in the liability account, it created a charge that I could not delete without deleting the payment also. I'm using the cash back bonus to credit my account. should I create an income account? That really doesn't sound right.

Mike White
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Re: Setup for cashback bonus

Paul Schwartz


----- Original Message ----

> From: txtinman <[hidden email]>
> To: [hidden email]
> Sent: Sunday, June 8, 2008 8:18:19 AM
> Subject: Setup for cashback bonus
>
>
> I was wondering how best to setup Gnucash for credit card cash back bonus
> refunds. When I tried to list it as a payment in the liability account, it
> created a charge that I could not delete without deleting the payment also.
> I'm using the cash back bonus to credit my account. should I create an
> income account? That really doesn't sound right.
>
> Mike White

What I do is Credit to an Expense account [which reduces the expense without meddling with Income].

HTH

Paul

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Re: Setup for cashback bonus

Jason Ahrens
In reply to this post by txtinman
txtinman wrote:
> I was wondering how best to setup Gnucash for credit card cash back bonus
> refunds. When I tried to list it as a payment in the liability account, it
> created a charge that I could not delete without deleting the payment also.
> I'm using the cash back bonus to credit my account. should I create an
> income account? That really doesn't sound right.
>  
Do you get any kind of tax implications on the cash back? Do you have to
report cash-back as income? If so, then income is really the place it
should be. Otherwise I'm sure there's a plethora of ways to deal with it.

Jason
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Re: Setup for cashback bonus

txtinman

Jason Ahrens wrote
 
Do you get any kind of tax implications on the cash back? Do you have to
report cash-back as income? If so, then income is really the place it
should be. Otherwise I'm sure there's a plethora of ways to deal with it.
It's not really income, it's a refund. There are no tax implications. I tried to show it as a payment to a liability, but Gnucash would create a charge that would negate the payment.
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Re: Setup for cashback bonus

Stuart Mitchell
txtinman wrote:
> It's not really income, it's a refund. There are no tax implications. I
> tried to show it as a payment to a liability, but Gnucash would create a
> charge that would negate the payment.
>  

I handle all cashback as a transfer from Income:Other Income:Cashback to
the relevant liability or asset account. This covers both annual CC
cashback (transfer to Liabilities:CC) and adhoc cashback such as QuidCo
(transfer to Assets:Current Acount).

Since not every item under Income is taxable the above works fine for me...

Stuart

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Re: Setup for cashback bonus

txtinman
Stuart Mitchell wrote:

>
> I handle all cashback as a transfer from Income:Other Income:Cashback
> to the relevant liability or asset account. This covers both annual CC
> cashback (transfer to Liabilities:CC) and adhoc cashback such as
> QuidCo (transfer to Assets:Current Acount).
>
> Since not every item under Income is taxable the above works fine for
> me...
>
> Stuart
>
>
I guess I'll handle it in a similar manner. Thanks to all for the
suggestions.

Mike White
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