State Income Tax Filing for clubs that are established in states without state income tax
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State Income Tax Filing for clubs that are established in states without state income tax Our club is in its infancy, and we are registered as a general partnership in Texas, a no-state-income-tax state. It was established as a club for family and extended family members but we were skittish about encouraging non-Texas membership, and we currently have no members who reside outside of Texas, but we'd like to open up to our non-Texas family members. The Bivio website mentions possible issues with Louisiana, Florida, and Washington DC. We happen to have relatives in those areas, in addition to Georgia. Are there any clubs in a similar situation that must file state income taxes in one or more states because even though they were established in a no-state-income-tax state, they have members in states that do have state income taxes? Even if the club doesn't have to file, how do you ensure the member(s) residing in a state-income-tax state get what they need? How is the state tax filing burden shared, like any other club expense? Is it a "big deal" for your club and/or membership? Any thoughts would be appreciated! To answer your questions: "Are there any clubs in a similar situation that must file state income taxes in one or more states because even though they were established in a no-state-income-tax state, they have members in states that do have state income taxes?" Yes. I have worked with some of them. "Even if the club doesn't have to file, how do you ensure the member(s) residing in a state-income-tax state get what they need?" Usually, the only thing those members need is their federal K-1. Either the state return starts with federal taxable income from their personal 1040 or there is a procedure to transfer the relevant information from the K-1 to the state return. "How is the state tax filing burden shared, like any other club expense? Is it a "big deal" for your club and/or membership? Any thoughts would be appreciated!" This should be covered in your partnership agreement. My personal opinion is that the club should absorb the cost as it would any other expense. You (the other club members) chose to admit members who lived in a state that required a(n additional) state tax return, so you (collectively) are responsible for any necessary expenses. Ira Smilovitz, EA Our club is in its infancy, and we are registered as a general partnership in Texas, a no-state-income-tax state. It was established as a club for family and extended family members but we were skittish about encouraging non-Texas membership, and we currently have no members who reside outside of Texas, but we'd like to open up to our non-Texas family members. The Bivio website mentions possible issues with Louisiana, Florida, and Washington DC. We happen to have relatives in those areas, in addition to Georgia. I had posed my question to Ira before posting it in club_cafe. I didn't get any other responses, but I'd like to hear from clubs that have members in states other than the one they are registered in, or have members in multitple states. Have do you manage the state filing requirements and share the state income tax filing expenses. We are registered in California and have/had members in many states. The states include Washington, Idaho, Arizona, Wisconsin & North Carolina.I have a list of states to not accept members from because of the state filings. From what my research says I didn't have to file state filings for the states that our members are in. John I had posed my question to Ira before posting it in club_cafe. I didn't get any other responses, but I'd like to hear from clubs that have members in states other than the one they are registered in, or have members in multitple states. Have do you manage the state filing requirements and share the state income tax filing expenses. John, You are correct. None of those states impose a filing requirement for a club based in CA. Ira Smilovitz, EA
Will someone publish a list of states that does not require a state filing for an investment club please. If none is available, how do I find out if a state filing is required? NormC From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of ira smilovitz via bivio.com John, You are correct. None of those states impose a filing requirement for a club based in CA. Ira Smilovitz, EA On Sun, Dec 20, 2020 at 11:55 AM John Rice via bivio.com <user*24380400001@bivio.com> wrote:
Thanks a bunch!
On Sunday, December 20, 2020, 10:55:12 AM CST, John Rice via bivio.com <user*24380400001@bivio.com> wrote:
We are registered in California and have/had members in many states. The states include Washington, Idaho, Arizona, Wisconsin & North Carolina.I have a list of states to not accept members from because of the state filings. From what my research says I didn't have to file state filings for the states that our members are in. John I had posed my question to Ira before posting it in club_cafe. I didn't get any other responses, but I'd like to hear from clubs that have members in states other than the one they are registered in, or have members in multitple states. Have do you manage the state filing requirements and share the state income tax filing expenses. Norm, the list is in the Bivio site. Go to Bivio and click on help. Then click on State Tax Requirements. Here is the link below. John
the other option to go on line to the respective state's tax department and see if it clearly provides filing requirements. Peter Dunelberger
Yes, I will, thanks Peter!
On Sunday, December 20, 2020, 08:46:09 PM CST, Peter Dunkelberger via bivio.com <user*26984900001@bivio.com> wrote:
the other option to go on line to the respective state's tax department and see if it clearly provides filing requirements. Peter Dunelberger
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