Okay-that makes sense. One more question though. Is that
PIPE for 2003 tax year or PIPE lifetime?

Thank you very much for your help.

John
LVF Investment Club Treasurer



IraS1@aol.com wrote:
> >>During 2003, one of our club members made a partial
> withdrawal of $3,500 to buy an RV.
>
> >>The withdrawal is shown on line 22 of the Schedule K-1...how
> does this person report this on their 1040?  Both of us
> tried reading the IRS instructions and, well, we've all read
> those instructions.  We'd just like to know how to report it
> correctly.
>
>  
> Generally, they don't. If the $3500 was more than their Paid In Plus Earnings at the end of the year, then the excess of the $3500 over PIPE would be reported as a capital gain on Schedule D. If the $3500 was less than their PIPE, it is just a return of capital and it is not reported on Form 1040.
>  
> Ira Smilovitz