The Motley Fool Discussion Boards
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.
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