We are wondering exactly what the tax laws are with respect
to the amount of capital losses that a club can take. Is
there a dollar limit per club or does it simply apply the
$3000 loss per member? Thanks in advance.

Lounge Rat Investment Club

TIM/DARCI THOMAS wrote:
> We are wondering exactly what the tax laws are with respect
> to the amount of capital losses that a club can take. Is
> there a dollar limit per club or does it simply apply the
> $3000 loss per member? Thanks in advance.
>
> Lounge Rat Investment Club

There is no limit. The club doesn't pay taxes, it passes all
items of income, loss and deduction through to the partners.
When you prepare the K-1s for each partner at the end of the
year, you will pass the proportionate loss to each partner.
S/he will then combine that amount with her/his personal
capital gains/losses and apply the $3000 limit.

If this isn't clear, please ask again.

Ira Smilovitz