Hi Everyone,

We've posted this in the past, but we can't say it enough.

It is very important to understand that every investment you can
purchase from a brokerage that has a ticker symbol is not necessarily
regular common stock. It is important to understand this because
different types of investments require different tax accounting.
bivio provides your club partnership tax accounting for investments in
common stock and ETF's and mutual funds which are made up of common
stock. It does not provide you with the tax accounting you need if,
for example, you own gold bullion.

How might that happen? There is a commodity ETF with ticker GLD that
is very popular right now. If you own this, you do not actually own
shares in a company, you own gold bullion. Here is a description of
the type of calculations you need to do to report the income from this
investment each year.

http://www.spdrgoldshares.com/media/GLD/file/SPDR-Gold-Trust-Tax-Information-2009.pdf

Income from GLD is even taxed at a different long term capital gains
rate than long term capital gains from stocks. Gold is considered a
collectible and is taxed at a 28% long term rate. Long term capital
gains from stocks are taxed at a maximum rate of 15%.

Another category of investment where shares trade with a ticker but
are not stock are Master Limited Partnerships. They also bring along
a specialized set of accounting and taxation requirements which bivio
services do not provide.

A brief list of some of the specific investments that will cause
accounting and tax issues for your club can be found on our "Before
You Invest" page at

https://www.bivio.com/site-help/bp/Before_You_Invest

Add into the mix the fact that in a club setting you have to overlay
partnership accounting requirements on top of this complex tax
information you will probably not even find out until far into the tax season.

We reiterate again that you do not want to hold these types of
investments in your investment club.

If you have any questions, we're always glad to check into a specific investment before you purchase
it. Just email us the ticker at support@bivio.com

It's far better to find out there's a problem before you purchase something than after.

An ounce of prevention is worth a pound of cost to hire a CPA to do your club taxes!