Accounting for dividends of stocks held for 3rd party

External question — Personal Finance Stack Exchange Author: Gerous Original post: https://money.stackexchange.com/questions/134701 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. Assuming I hold a number of stocks in a brokerage account for a 3rd party which pays dividends. The broker automatically deducts taxes and debits the remaining money in the account. How do I accurately record the liability after taxes in my books? Lets say I have the following accounts: Type Name Assest Brokerage-Account Expenses Taxes Liability 3rdParty Income Dividends E.g. say 100$ dividends, and 15$ deducted in taxes. If I record this as Account Dr Cr Dividends 100 Taxes 15 Brokerage Account 85 3rdParty 85 ?????? 85 In which account do I record the corresponding 85$?