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I hope you are using investment club accounting software to maintain your records, because if you aren't, there is a very high likelihood that you haven't generated correctly all of the numbers you need to prepare an accurate return. If you are using one of the ICLUB products, you should be referring to the Allocation of Income and Expense report or purchasing their additional tax module. If you are using bivio, you can generate the 1065 directly within the program.

I've always kept the books in an Excel spreadsheet that is in the format recommended by Better Investing many years ago as our club was started in 1986, and there was no software available at the time.

I believe our numbers are accurate. If you think I am doing something incorrectly in reporting out this first disbursement after all these years, now would be a really good time for me to learn how to report it properly. Is there another book I should be looking at? I haven't been a member of NAIC for a bunch of years, but perhaps I should look into that.

Are you saying that the disbursement has to be allocated in a specific manner? I'm wondering about that as we've reported and paid taxes on all the income from the club all these years, but everything has always been reinvested. We have cash this year because we made a very nice profit on something we sold, and we opted to distribute some of the money back to the members, but they do also have to pay taxes on that capital gain.
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