How to consider new members from other states with state tax filing requirements
Daniel Williams Sr. on
I have a question for which I would appreciate any comments or insights on: Our club is about 5 years old and based in Texas, where we have no individual income tax requirement or requirement that investment clubs file a state tax return. We are a family club currently consisting of siblings and our children. All of our members currently reside in Texas. We look forward to adding new members, some of whom may reside in other states. I see that even though a club may not be based in a particular state, some of those states still require the club to file a state return, based on a club member's residency.
For clubs such as ours that have members who reside in states that have club and/or individual state income tax filing requirements, how are the expenses associated with fulfilling these requirements shared? Are they considered club expenses or do the members in the state with the requirement pay all of those expenses? Again, any insights will be appreciated.
Randy Purvis on
Our club rules require that the member is a resident of Michigan. We have had members move out of the state and that triggers a buyout for them. As a group we decided not to be involved with filing returns for multiple states.
Randy Purvis
D &C Investment Club
Sent from my iPhone
> On Mar 30, 2025, at 7:56â¯PM, Daniel Williams Sr. via bivio.com <user*33673100001@bivio.com> wrote:
>
> I have a question for which I would appreciate any comments or insights on: Our club is about 5 years old and based in Texas, where we have no individual income tax requirement or requirement that investment clubs file a state tax return. We are a family club currently consisting of siblings and our children. All of our members currently reside in Texas. We look forward to adding new members, some of whom may reside in other states. I see that even though a club may not be based in a particular state, some of those states still require the club to file a state return, based on a club member's residency.
>
> For clubs such as ours that have members who reside in states that have club and/or individual state income tax filing requirements, how are the expenses associated with fulfilling these requirements shared? Are they considered club expenses or do the members in the state with the requirement pay all of those expenses? Again, any insights will be appreciated.
ira smilovitz on
The requirement to file a specific state return is imposed on the club, not the individual. So I would would expect the club to pay the expenses. If the club doesn't want to do that, don't accept members from outside your state. There are only eight states that require a return if a member is a resident (regardless of where the club is based). bivio produces returns for three of them (NJ, NY, and PA). The other five are GA, IN. MO, OR, and WV. This leaves you with plenty of options.
I have a question for which I would appreciate any comments or insights on: Our club is about 5 years old and based in Texas, where we have no individual income tax requirement or requirement that investment clubs file a state tax return. We are a family club currently consisting of siblings and our children. All of our members currently reside in Texas. We look forward to adding new members, some of whom may reside in other states. I see that even though a club may not be based in a particular state, some of those states still require the club to file a state return, based on a club member's residency.
For clubs such as ours that have members who reside in states that have club and/or individual state income tax filing requirements, how are the expenses associated with fulfilling these requirements shared? Are they considered club expenses or do the members in the state with the requirement pay all of those expenses? Again, any insights will be appreciated.
Margaret Wentworth on
I am interested in the fact that this is a family club. I remember asking about family clubs during a Bivio webinar years ago and being told that this was not allowed. Did I hear that wrong? How do you answer that question in the tax interview that asks about relatives?
The requirement to file a specific state return is imposed on the club, not the individual. So I would would expect the club to pay the expenses. If the club doesn't want to do that, don't accept members from outside your state. There are only eight states that require a return if a member is a resident (regardless of where the club is based). bivio produces returns for three of them (NJ, NY, and PA). The other five are GA, IN. MO, OR, and WV. This leaves you with plenty of options.
I have a question for which I would appreciate any comments or insights on: Our club is about 5 years old and based in Texas, where we have no individual income tax requirement or requirement that investment clubs file a state tax return. We are a family club currently consisting of siblings and our children. All of our members currently reside in Texas. We look forward to adding new members, some of whom may reside in other states. I see that even though a club may not be based in a particular state, some of those states still require the club to file a state return, based on a club member's residency.
For clubs such as ours that have members who reside in states that have club and/or individual state income tax filing requirements, how are the expenses associated with fulfilling these requirements shared? Are they considered club expenses or do the members in the state with the requirement pay all of those expenses? Again, any insights will be appreciated.
ira smilovitz on
There is no problem with family clubs. You answer the question about related members correctly, whatever that means for the specific circumstances of your club.
I am interested in the fact that this is a family club. I remember asking about family clubs during a Bivio webinar years ago and being told that this was not allowed. Did I hear that wrong? How do you answer that question in the tax interview that asks about relatives?
The requirement to file a specific state return is imposed on the club, not the individual. So I would would expect the club to pay the expenses. If the club doesn't want to do that, don't accept members from outside your state. There are only eight states that require a return if a member is a resident (regardless of where the club is based). bivio produces returns for three of them (NJ, NY, and PA). The other five are GA, IN. MO, OR, and WV. This leaves you with plenty of options.
I have a question for which I would appreciate any comments or insights on: Our club is about 5 years old and based in Texas, where we have no individual income tax requirement or requirement that investment clubs file a state tax return. We are a family club currently consisting of siblings and our children. All of our members currently reside in Texas. We look forward to adding new members, some of whom may reside in other states. I see that even though a club may not be based in a particular state, some of those states still require the club to file a state return, based on a club member's residency.
For clubs such as ours that have members who reside in states that have club and/or individual state income tax filing requirements, how are the expenses associated with fulfilling these requirements shared? Are they considered club expenses or do the members in the state with the requirement pay all of those expenses? Again, any insights will be appreciated.
Daniel Williams on
Margaret,
Thank you for your comment/inquiry
Ira, thank you for both replies. The tax interview proceeds in such a way as to "understand" how/if everyone in the club is related. With a club that is made up entirely of relative (blood or marriage), the answer is straightforward.
Thanks again!
--Dan W.
On Monday, March 31, 2025 at 06:58:45 AM CDT, ira smilovitz via bivio.com <user*2883400001@bivio.com> wrote:
There is no problem with family clubs. You answer the question about related members correctly, whatever that means for the specific circumstances of your club.
I am interested in the fact that this is a family club. I remember asking about family clubs during a Bivio webinar years ago and being told that this was not allowed. Did I hear that wrong? How do you answer that question in the tax interview that asks about relatives?
The requirement to file a specific state return is imposed on the club, not the individual. So I would would expect the club to pay the expenses. If the club doesn't want to do that, don't accept members from outside your state. There are only eight states that require a return if a member is a resident (regardless of where the club is based). bivio produces returns for three of them (NJ, NY, and PA). The other five are GA, IN. MO, OR, and WV. This leaves you with plenty of options.
I have a question for which I would appreciate any comments or insights on: Our club is about 5 years old and based in Texas, where we have no individual income tax requirement or requirement that investment clubs file a state tax return. We are a family club currently consisting of siblings and our children. All of our members currently reside in Texas. We look forward to adding new members, some of whom may reside in other states. I see that even though a club may not be based in a particular state, some of those states still require the club to file a state return, based on a club member's residency.
For clubs such as ours that have members who reside in states that have club and/or individual state income tax filing requirements, how are the expenses associated with fulfilling these requirements shared? Are they considered club expenses or do the members in the state with the requirement pay all of those expenses? Again, any insights will be appreciated.