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General Accounting

Unsold Paper Assets Taxes, is it updated Quarterly as liabilities based balance sheet?

Hey all,

I am making a personal balance sheet, for financial progress check. Since each paper asset group is purchased in a different year, its a lot of work calculating all the taxes I would have to pay at sale each time I update my balance sheet (e.g. a month after Q1 ends).

The question is: Do I need to update Taxes as liabilities quarterly on the balance sheet(even when I don’t sell)? whats the norm? Do corporates / Pro accountants do tax calculation on paper assets (P&L) each quarter? Yearly? or only on sale?

I have reports of Q1 on paper asset net value (e.g. etrade statements) but since I didn’t sell, calculating is complicated.

I need to separate what

in progress 1 Answer

Answer

  1. Reply
    Sheena M
    28 Answers
    This answer is edited.
    1. Paper assets or unrealized gains and losses on sold assets. Unrealized gains and losses on “paper” is only real on paper. Capital gains are taxed only when they are realized, and capital loses are deducted on the tax return after they are realized.  Best tax strategy to receive the maximum benefit.is to deduct capital losses to reduce the tax burden of capital gains, the burden of future capital gains, and to offset ordinary income up to the allowed amount
    2. Profit and Loss Statement (P&L) is the income statement to capture a profit or loss over a month, quarter, or a year. Regardless if taxes are filed quarterly or annually, it is best to prepare a more frequent P&L statement to know how the company is performing. If the entity is a partnership (LLC – multi-member or corporation) usually annual taxes are usually paid.

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