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Author: mectecinc One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121338  
Subject: Tax on Investment Club Final Distribution Date: 3/24/2008 10:16 PM
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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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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 99722 of 121338
Subject: Re: Tax on Investment Club Final Distribution Date: 3/24/2008 10:20 PM
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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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Author: mectecinc One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 100210 of 121338
Subject: Re: Tax on Investment Club Final Distribution Date: 4/11/2008 11:51 AM
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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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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 100212 of 121338
Subject: Re: Tax on Investment Club Final Distribution Date: 4/11/2008 2:17 PM
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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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Author: mectecinc One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 100213 of 121338
Subject: Re: Tax on Investment Club Final Distribution Date: 4/11/2008 2:34 PM
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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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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 100222 of 121338
Subject: Re: Tax on Investment Club Final Distribution Date: 4/11/2008 4:39 PM
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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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