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Financial Planning / Tax Strategies


Subject:  Re: Investment Clubs Date:  4/8/1998  10:09 AM
Author:  TMFTaxes Number:  3332 of 123001

[[I am the general partner of an investment club. The club is extremely small and our capital gains for
1997 was $800 and dividend income was approx $50. The money was reinvested into the market
and no cash distributions have been made to the partners.

I was trying to do the taxes for the club and found the forms and booklets extremely confusing. Is
there any advice out there on how to tackle this problem?]]

The only "other" way around it is to take the records to a tax pro to help you complete the partnership tax return for the investment partnership. I'm assuming that your club is organized as a partnership (virtually all of them are), so you'll have to deal with the rules and regulations of the partnership tax return (Form 1065), and you'll need to issue Form k-1 to each partner in the partnership.

For some additional help, see IRS Publication 541. But if you are still confused, you'll have to get professional help.

TMF Taxes

SPECIAL NOTE: I try to answer as many questions as I can each week, and I generally select those that have not been asked before. If you don't get a detailed answer to your question, it is probably because my time is so limited during tax se