IraS1@aol.com wrote:
> In a message dated 3/17/2005 2:30:13 P.M. Eastern Standard Time,
> tindles@bivio.com writes:
> Is it
> true that for tax years ending after 12/31/2004
> Illinois investment clubs
> are exempt from the replacement
> tax and no longer have to file
> IL-1065?
>
> Secondly, I wonder if anyone knows whether the
> investment
> income or loss from an investment club partnership is
> treated
> as "business or nonbusiness" on the state K-1's.
>
> This may well be a
> moot question in the coming years, but I
> thought I would put it  out
> there, because it seems like
> every year I struggle with this
> interpretation.
>
> Thanks.
>
>
> Yes, investment clubs no longer file an IL-1065. Investment club
> income is generally non-business income. The one exception that I can think of
> would be the income from an investment in an MLP/PTP which issues a K-1 showing
> operating earnings on lines 1, 2, or 3 of Schedule K-1.
>  
> Ira Smilovitz
>  
>  Dear Ira,

Thanks for your reply. I noticed that the exemption on
filing the Illinois parntership 1065 is for tax years ending
on or after 12/31/2004.

I thought some readers of this public posting might like to
know this clarification.