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What is the best way to show non-taxable increases in cash surrender value or face value of life ins

Jeffrey Kirk

I have several annuities set up as tax-deferred investment accounts, and several life insurance policies set up as tax-deferred retirement accounts. All increases/decreases in the face value/cash surrender value of these policies are tax-deferred (i. e., tax free), non cash flow events. What is the proper/best way to set these assets up, and how do I show the increases/decreases in face or cash surrender values as non-taxable, non-cash flows?

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NotACPA

Well, you've got 2 options
1) Record an transaction with the category being the account name itself, in square brackets. [Account name]
2) Create a special category that you use for this increase ... and don't assign a tax line to it.

Jeffrey Kirk

Thanks. I'll try both

Jeffrey Kirk

NotACPA, One additional Q: Would you set them up as an "Investment" or a "Retirement" ?

NotACPA

NotACPA, One additional Q: Would you set them up as an "Investment" or a "Retirement" ?

Since the annuities/insurance policies don't have securities in them (where you know the share balance and the unit price), I'd be inclined to set them up as just a Asset account, but use the "Account Intent" flag on the "Display Options" tab of the account to set it's intent as "Retirement" ... which is how I have my Annuity account set up.

But there's really no harm in how you describe you've set them up.

TOOLS, Account List, click Edit across from the accounts name, click Display Options, select "Retirement" under "Account Intent"

unknown

Or you could set them up as Investment type accounts, create a fake security valued at $1 per unit or share. Use reinvest shares to add to the value of the account...once again using the fake security at $1 per share.

Alternatively, you could also just use Shares Added or Shares Removed to adjust the balance.

For example, you have an annuity valued at $100,000. Create a security ABC Annuity with a share price of $1 per share. For the opening balance of your account, start with Shares added of 100,000 shares at $1 per share.

When the value increase to $110,000, use the REINVEST DIV 10,000 shares at $1 per share.

Or you can just use a Shares Added once again and add 10,000 shares at $1 per share.

Either way should work.

NotACPA

Or you could set them up as Investment type accounts, create a fake security valued at $1 per unit or share. Use reinvest shares to add to the value of the account...once again using the fake security at $1 per share.

Alternatively, you could also just use Shares Added or Shares Removed to adjust the balance.

For example, you have an annuity valued at $100,000. Create a security ABC Annuity with a share price of $1 per share. For the opening balance of your account, start with Shares added of 100,000 shares at $1 per share.

When the value increase to $110,000, use the REINVEST DIV 10,000 shares at $1 per share.

Or you can just use a Shares Added once again and add 10,000 shares at $1 per share.

Either way should work.

But if you can't download security holdings, or prices, into the account .. why bother to set it up as an investment account with fake securities?