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Forum Guru
 
Group: Forum Members
Last Login: 12/07/2011 2:31:58 AM
Posts: 70,
Visits: 179
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| Hi, My accountant tells me that in addition to showing the mark to market entries for my share portfolio, the taxman also is looking for a figure for a provision for tax on unrealised gains. When I did the end of year roll over for 05/06. He couldn't find that figure in the MySF reports. (Maybe, in fact quite possibly, I stuffed up). What he wants to do this year is make sure it's there. He has asked me to send him a copy of the B/S and P&L before I do the rollover so he can calculate the figure for this year. He said he would also need to put some entries in as at 1/7/06 for last years omission. Does MySF calculate the provision for tax on unrealised gains and , if so, where would I find it? Regards
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Forum Guru
Group: Forum Members
Last Login: 12/07/2011 2:31:58 AM
Posts: 70,
Visits: 179
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| If it helps, my accountant says I should calculate the tax on unrealised gains then Dr Member accounts Cr Future Income Tax Liability Regards
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MySF Administrator
Group: Administrators
Last Login: 4/11/2010 3:24:01 PM
Posts: 464,
Visits: 633
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Hi,
Sorry about the delay in replying to your question.
MySF Manager can create the provision for tax liability during the year end process. To get the software to generate this entry please tick the 'Generate journals for deferred tax liability on revalued assets' box which appears on the 'Adjusting Entries' screen (after revaluations) of the year end process.
You may wish to try and do the rollover with the MySF Sample Fund provided to see how this works.
Regards,
MySF
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Forum Guru
Group: Forum Members
Last Login: 12/07/2011 2:31:58 AM
Posts: 70,
Visits: 179
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| Thanks, If I put journal entries for the previous year in as suggested by my accountant (see above), as at 1st July this year to correct the prior years omission, will that distort the end of year wizard for the current years result? Regards
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MySF Administrator
Group: Administrators
Last Login: 4/11/2010 3:24:01 PM
Posts: 464,
Visits: 633
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Hi,
You would need to 'use up' some or all of the provision made for future capital gains tax if and when you sell the assets. Your accountant should be able to advise of exactly what portion of previously created provisions have been used in this year.
MySF Manager actually provides you with an option to reverse the transaction created to record the provision for tax liability. The reason for this is that while you may need to or want to show this in the reports at the end of the year, there is no actual tax liability yet, because the asset has not been sold.
In any case, you should discuss this issue with your accountant or accredited financial adviser.
Regards,
MySF
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Forum Guru
Group: Forum Members
Last Login: 12/07/2011 2:31:58 AM
Posts: 70,
Visits: 179
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| Hi My accountant would like me to show the Dr on Member accounts and the Cr on Future Income liability. He has given me split between members but I'm a bit unsure which account numbers I should put the entries against. I presume they need to be the same accounts as your wizard would use at year end. Do I Credit acc 2350? What account numbers should I debit? Regards
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MySF Administrator
Group: Administrators
Last Login: 29/01/2012 4:16:49 PM
Posts: 208,
Visits: 958
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Hi,
The accounts that the year end process uses are:
DR 3455 - (membership number) :: Income Tax Preserved (sub-account by member)
CR 2140 - :: Tax Deferred Liability
The tax attributable to each member should be done separately.
In order to maintain consistency between system-generated transactions that you will be doing for the current year and manual transactions based on your accountants calculations for prior years, we suggest you use the same accounts. This will enable meaningful totals which should match your accountants figures.
If you have any further queries, please let us know.
Regards,
MySF
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