Partnership stocks
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Partnership stocks Hey everyone... Remember last month's warning about not buying stock in partnerships? I checked the list against our holdings and wouldn't you know it, we have stock in one of those companies! Yikes! So, now the question is, what is the best advice for us. As the treasurer, I'd like to present the best options to our group and let them decide. I'm assuming it would be best to sell the stock and then deal with the tax issues next year with an accountant? What about this year? Our taxes have long ago been filed. I'm out of my league here.
Just when I thought the treasurer job was easy! Any advice would be helpful. Thanks in advance. Dear Kimberly, Being a club treasurer is easy. But you're not going to be able to account for everything you could possibly invest in with a $129 per year partnership accounting program. As you have found out, accounting for investments in partnerships correctly is beyond the scope of the services we or any other investment club software can provide for you.As a first step, you should change the classification on any distributions that were entered in bivio from dividend to Return of Capital. Then, you'll need to use the Schedule K-1's you received to know what kind of income you'll have to report. You'll need to find an outside tax advisor to help you adjust your club taxes correctly and also to determine what type of investment and member basis adjustments will still be needed in your bivio records. Once you know those amounts, let us know and we can help you update them in our records. Your tax advisor will also need to determine whether you have to file any additional state taxes and whether any of the types of income you've had will need to be tracked until you sell the investment so that you will report the sale correctly on your taxes. Because of all these issues, we'd recommend that you sell these investments ASAP. The longer you keep them, the more complications they will cause because you won't have accurate member account records until you've received all their end of year tax information and have made the adjustments needed to reflect what they show. 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 Follow Us on Google+ Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe On Wed, Apr 16, 2014 at 4:10 PM, Kimberly Hazen <hazenfree@gmail.com> wrote:
Thanks for your quick response. I will get on this right away. Kimberly On Wed, Apr 16, 2014 at 3:17 PM, Laurie Frederiksen <laurie@bivio.biz> wrote:
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