club_cafe: Distributions

iras1 on

>>I am going over tax forms, and noticed that on our members
that did a cash withdrawal, it shows the amount distributed,
but does not show their loss. How does this get reported?

What loss? If you mean that they withdrew and received less than their paid in capital and distributed earnings, that loss is reported on their withdrawal statement. The club does not report it to the IRS because the club does not always know about all of the possible factors that can change the reported amount. This is especially true if the withdrawal is funded with stock.

If, on the other hand, there were realized losses from stock sales during the year which should have been distributed to the withdrawn members, check all of your entries to make sure they are correct.

If this doesn't answer your question, ask again.

Ira Smilovitz

Mail