[moneydance] Tax accounts

[Simon B]

Hi Jill,

Thanks for this. So essentially my Liability account is the tax
office, and when the account is negative I owe them money.
When it comes to actually pay them, I transfer money from my tax
holdings account to the Liability account.

If I have understood this correctly, this seems quite neat - thanks!

On Sun, Aug 31, 2008 at 1:18 PM, Jill Lundquist <jill at chezns.org> wrote:
> Hello,
>
> The usual way to approach net worth is to list assets and liabilities and
> subtract the latter from the former to get net worth.  In your situation,
> you have the money earmarked to pay taxes listed as an asset, which it is --
> it's money in your account and under your control.  You're also right that
> your net worth should not reflect that money.  To have your net worth come
> out right you have to have a corresponding liability of the same amount.
>
> I would try keeping your current asset accounts and in addition creating a
> liability account to account for the amount that will be owed for taxes.
>
> Best,
>
>    Jill
>
> On Sun, Aug 31, 2008 at 11:26 AM, Simon B <sbwien at gmail.com> wrote:
>
>> Hello,
>>
>> I am newly self employed and have to put aside X% of my income every
>> month to be collected by the tax office at the end of the year.
>>
>> To make this easier, I put the X% into a separate bank account so I
>> don't spend it. I like to see which money is mine, and which isn't.
>>
>> In MoneyDance, the net worth feature is great  - it tells me how I am
>> doing.
>> Unfortunately the net worth feature includes my account with the tax
>> in, making it unusuable now.
>>
>> How can I use MoneyDance to keep track of how much money I have in my
>> accounts, but exclude this account used for tax? If it's not possible,
>> what other Java based personal finance products does anyone recommend?
>>
>> Thanks in advance for your collective help.
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