On Sat, Dec 24, 2022 at 9:32 AM Jay Tindlebaum
<
jose.l....@gmail.com> wrote:
>
> Thank your for your feedback, and Ajoeibin for sharing your story. What a hell of a experiencing!
>
> This fund is essentially an retirement saving account with fiscal benefits... per person. So each of us has to contribute (with a minimum annual amount) to the saving account so we could reach the full fiscal benefit.
>
> The "problem" is in the first step (transaction)--money transfer from each individual bank accounts to the invest bank account. Considering an example amount and the bookeeping in my *perspective*, I account my money transfer as follows:
>
> dr assets:invest bank:checking 2000 EUR
> cr assets:my day-to-day bank:checking -2000 EUR
>
> No changes in my assets. Just moving them around.
>
> Now, if I do exactly the same with my wife's contribution, that is,
>
> dr assets:invest bank:checking 2000 EUR
> cr assets:wife's day-to-day bank:checking -2000 EUR
>
> Then, I am incorrrectly increasing "my" assets. Should I consider my wife's contribution as an income? It is not an income, but at least it wouldn't mistakenly increase my assets.
>
I would be very careful to note that the funds were moving from my
wife's checking account into a joint savings account from which the
funds would move to a joint investment account where it is a
registered investment item.
I'm guessing but I think that if you label the savings account
something like joint savings account that is only for funds destined
to the joint investment vehicle and its officially labelled as such
you should not need to move it through your income.
If that landing account (where the funds move through) is not labelled
joint - - - - well the issues just escalated and you might be
challenged on the funds moving through as to whether it might be
income for you.
If you don't label it clearly you going to both get taxed on it
because it would then be also part of your income - - - - don't think
you want that!!!
Accurate (and at least somewhat easy to understand) labels make for
less questions from those that aren't familiar with your system.
Yes I know this all sounds convoluted - - - these kind of details, imo
anyway, are important to keep others happy - - - not to keep you
happy.
(You might understand - - - - so might your wife - - - - - but don't
count on someone else 'understanding' - - - - especially if they have
any kind of axe to grind in the situation!!!)
(this is the joy of double entry accounting - - - - with accurate
labelling everything is trackable and then there will be fewer
'stupid' questions if there is anything like an audit or if the
frustrating D word shows up (or anything of that level of calamity!) -
- - you are NOT hiding anything and it is clear where funds came from
and where they went to and then the whys and wherefores and any other
questions are easily, one hopes, answered)
HTH