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We terminated our investment club in 2007. Our final distribution was all cash. It exceeded our final adjusted basis. I assume I have to report that difference on my Schedule D. Since I have been involved in the investment club for ten years, would this gain be all long term? Thanks in advance for your reply.
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We terminated our investment club in 2007. Our final distribution was all cash. It exceeded our final adjusted basis. I assume I have to report that difference on my Schedule D. Since I have been involved in the investment club for ten years, would this gain be all long term? Thanks in advance for your reply.

It's long term. Your "purchase" date is the date you joined the club. Your purchase price is your adjusted tax basis as shown on your withdrawal report. The gain is the difference between the cash you received and your adjusted tax basis.

Ira
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Does this gain get reported on Schedule D or do I need Form 4797? Thanks in advance for your reply.
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Does this gain get reported on Schedule D or do I need Form 4797? Thanks in advance for your reply.

Directly on Schedule D, no 4797 needed. Your partnership interest is not business property.

Ira
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Thanks for your reply IRA. Turbotax thinks it knows something that it is not supposed to know.
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Thanks for your reply IRA. Turbotax thinks it knows something that it is not supposed to know.

I doubt it. You probably made an error with a check box somewhere.

Ira
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