Ira,

1.) Where would one find the withdrawl report?
2.) What IRS form would a member use to report the loss ?

Thanks!
Chris

IraS1@aol.com wrote:
> In general, there isn't much difference between the K-1 an ongoing member and a withdrawn member receives -- the end of year percentage (line d) will be 0% and the final K-1 box (line i) will be checked. There will be entries on line(s) 22 and/or 23.
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> In order to complete the member's personal income tax return, s/he will need the K-1 *AND* the withdrawal report. The K-1 documents the income realized during the part of the year that s/he was a member. The withdrawal report documents the adjusted cost basis of the partnership interest and the taxable proceeds from withdrawal. If the withdrawal was cash only, the difference between the two is taxable gain or loss. If there was stock included in the withdrawal, the calculation is more complicated, but the results should be present in the report.
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> If you need further assistance, just ask.
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> Ira Smilovitz
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> In a message dated 02/03/03 10:47:27 AM Eastern Standard Time, eric_rudy@bivio.com writes:
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> Does anyone know how a member's K1 should read if they
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> withdraw out of the club during the year?   Can they deduct
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> the loss on their 1040 if their distribution is less then
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> the total amount they put in or are they taxed on the
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> distribution received?
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> thanks
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> Eric
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> Somfaw IC