Unrealised capital gains (an estimate of the money your business would hypothetically make if it had sold the the investment a some nominated time) is calculated in current versions of Manager if you enter a Market price.
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This income is not available to your business (as you didn’t actually sell the investment) so is not taxed (in any jurisdiction I’m aware of). Manager does create a
Profit and lossaccountInvestment Gains (Losses)' for this unrealised gain. In settingsChart of Accountsyou need to relabel itInvestment Unrealised Gains (Losses)‘, create aNew TotalcalledTaxable income, and move the `Investment Unrealised Gains (Losses)’ account below this total. -
Manager creates a
Balance sheetaccount labelledInvestmentwhen you create an investment. This initially shows the “at cost” purchase cost of your investments. In the current version of Manager when you make aMarket priceentry the unrealised gain is allow added to this account obscuring the “at cost”. There is no current work around for this limitation, which is why I would like the user to be able to specify a custom control account for the “Investment accumulated revaluation” Minimize Capital Gains - #16 by Patch (as well as allowing users to separate investments into different groups).
Calculation of realised gains is not explicitly supported by the current version of Manager (the profit/loss calculated when a business actually sells an investment). This actual income typically contributes to a business taxable income. It can readily be manually supported in Manager by creating a Profit and loss account “Investment realised gain (loss)”. This account will contain taxable in come so must be placed in the COA above the “Taxable income” total. Then when an investment is sold create a line in the receipt for each purchase lot being sold, with the line reproducing the purchase unit price and quantity (sold in this transaction). Then allocate any residual amount to the “Investment realised gain (loss)” account.