Hello everyone,

Because of the cost basis reporting changes, there is a new IRS reporting form this year called Form 8949.

Some of you are receiving 1099s that indicate that you need to fill it in.

Just to let you know, this year form 8949 applies to individual tax returns only. It does not apply to your club partnership return.

It is fine to just ignore the note about it that you see on your investment club 1099's.

--
Laurie Frederiksen
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I am treasurer of Friends in Finance Investment Club. I just ran the taxes from Bivio. I have a question about a withdrawal report that shows up as the last page of the taxes prepared. My question is that we paid out Laura Rand in two payments, but the report seems to only show the last withdrawal and does not include the first one. I beleive that the K-1 looks fine.

Can you give this a quick look before I send it out to the member etc.

Thank You,

Joyce Blowers

Friends in Finance Investment Club

 

Our club will be disbanding so I need to feel confident that the program does this correctly.

 

Dear Joyce,

The only withdrawal reports that print out with the tax package are those that have information that needs to be reported on the members taxes on them. In a partial withdrawal, when a member withdraws less than their basis in the club, they do not have any immediate gains or losses to report. That is why you do not see two reports included in your case.

--
Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend! www.facebook.com/bivio
Follow us on twitter! www.twitter.com/bivio

----- Original Message -----

From: Laurie Frederiksen

To: club_cafe@bivio.com

Sent: Monday, February 20, 2012 3:16 PM

Subject: Re: [club_cafe] Question on taxes I just ran from Bivio

On Mon, Feb 20, 2012 at 3:46 PM, Joyce Blowers  wrote:

HI Laurie,

I am treasurer of Friends in Finance Investment Club. I just ran the taxes from Bivio. I have a question about a withdrawal report that shows up as the last page of the taxes prepared. My question is that we paid out Laura Rand in two payments, but the report seems to only show the last withdrawal and does not include the first one. I beleive that the K-1 looks fine.

Dear Joyce,

The only withdrawal reports that print out with the tax package are those that have information that needs to be reported on the members taxes on them.   In a partial withdrawal, when a member withdraws less than their basis in the club, they do not have any immediate gains or losses to report.  That is why you do not see two reports included in your case.

--
Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend!  www.facebook.com/bivio
Follow us on twitter!  www.twitter.com/bivio

Dear Betty,

If you go to this page:

http://www.irs.gov/app/picklist/list/formsInstructions.html?value=1065&criteria=formNumber&submitSearch=Find

and search for 1065, you will see a list of the forms that might go with a partnership return.

There is no 8949 listed.

In addition, if you look at the top of form 8949:

http://www.irs.gov/pub/irs-pdf/f8949.pdf

You will see that it is a form that goes with form 1040 which is the individual tax form.

I suspect it will be coming for business forms also. I spent quite a bit of time last fall trying to get an answer to that question. I even emailed the IRS, but didn't hear from them.

The only reference I've seen that mentions that at all was this blog posting:

http://onesourceblog.com/2011/08/new-schedule-d-for-cost-basis-reporting/

which seems to indicate they did hear from IRS sources that a business version of form 8949 might be in the works but would would not appear before 2012 at the earliest.

Just a final note that just because you don't have to file form 8949, you still need to report your short term and long term gains correctly. If you see different totals between what you get on your 1099 and what is calculated by bivio, it's important to investigate them and find out why they exist.


Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend! www.facebook.com/bivio
Follow us on twitter! www.twitter.com/bivio


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