Our ten year old club joined Bivio as of Jan. 1, 2005. The
switch-over date and account amounts are as of that date.
Is there an easy way to figure out the Paid amount and
Earnings Allocated amount for each member given that they
entered at different times? Is this information necessary
to generate correct tax information for 2005?

<<
Is there an easy way to figure out the Paid amount and Earnings
Allocated amount for each member given that they entered at different
times?
>>

It depends. Were you using a club accountint program before you came to
bivio? If you were using a version of NCA Club accounting, you can get
the figures you need from the members' status report. Set the report's
beginning date to the date of the club's first transaction and the
ending date would be 12/31/04. This should show you the amount that each
member has paid in. It will also give you a column called Paid In plus
Earnings [PIPE]. The difference between that column and the paid-in
column will give you the amount of Allocated Earnings.

If you weren't using Club accounting, did you keep track, somehow, of
Members' payments and the amount of income/loss allocated each year?
These are the figures that you need. If you were using a professional
tax preparer, they may have generated k-1s that show the amount of each
member's basis in the club, although that isn't strictly necessary.

If you do have a figure for each member's basis in the club, but don't
have the breakdown as to how much is paid in and how much is allocated
earnings, simply enter the figure for total basis in the paid in column
and leave the allocated earnings blank. This will still allow for
complete and accurate tax returns.

<<
Is this information necessary to generate correct tax information for
2005?
>>

That's hard to answer without knowing just what you did when you entered
the beginning balances. Strictly speaking those figures come into play
when a member leaves the club.At that time the member must report
gain/loss on disposal of the partnership units. Strictly speaking,
again, it really is not the club's responsibility to keep this
information for the members, but all the club accounting programs on the
market do perform this service.

So, in summary, if you have records for your 10 year history showing
amounts paid in by each member, and amounts allocated yearly, you can
build the necessary information. If not, you have a problem.

Rip West
Saint Paul, MN

Thanks SO much for your answer. This clears up a lot but
not everything. Our club was not using a club accounting
program before. We used an accountant.

I can easily calculate each member's payments into the club.
Is that the same amount as the "ending capital account"
amount on the K-1s? But is there a way to find the
income/loss allocated each year? I doubt we have a copy of
the K-1s for the last 10 years. Are the figures in Box N of
the K-1 accumulative or only for the tax year? I'm guess
the later.

I'm sure glad to know that I can enter only the member basis
and still generate correct tax forms. If I take this route,
will it only impact monies owed when a member leaves the
club or when the club disbands?

Thanks again for you info.



Rip West wrote:
> <<
> Is there an easy way to figure out the Paid amount and Earnings
> Allocated amount for each member given that they entered at different
> times?
> >>
>
> It depends. Were you using a club accountint program before you came to
> bivio? If you were using a version of NCA Club accounting, you can get
> the figures you need from the members' status report. Set the report's
> beginning date to the date of the club's first transaction and the
> ending date would be 12/31/04. This should show you the amount that each
> member has paid in. It will also give you a column called Paid In plus
> Earnings [PIPE]. The difference between that column and the paid-in
> column will give you the amount of Allocated Earnings.
>
> If you weren't using Club accounting, did you keep track, somehow, of
> Members' payments and the amount of income/loss allocated each year?
> These are the figures that you need. If you were using a professional
> tax preparer, they may have generated k-1s that show the amount of each
> member's basis in the club, although that isn't strictly necessary.
>
> If you do have a figure for each member's basis in the club, but don't
> have the breakdown as to how much is paid in and how much is allocated
> earnings, simply enter the figure for total basis in the paid in column
> and leave the allocated earnings blank. This will still allow for
> complete and accurate tax returns.
>
> <<
> Is this information necessary to generate correct tax information for
> 2005?
> >>
>
> That's hard to answer without knowing just what you did when you entered
> the beginning balances. Strictly speaking those figures come into play
> when a member leaves the club.At that time the member must report
> gain/loss on disposal of the partnership units. Strictly speaking,
> again, it really is not the club's responsibility to keep this
> information for the members, but all the club accounting programs on the
> market do perform this service.
>
> So, in summary, if you have records for your 10 year history showing
> amounts paid in by each member, and amounts allocated yearly, you can
> build the necessary information. If not, you have a problem.
>
> Rip West
> Saint Paul, MN

Christine,

<<
I can easily calculate each member's payments into the club. Is that the
same amount as the "ending capital account" amount on the K-1s?
>>

No, but if you have the Ending Capital Account on the k-1s for 2004,
that is all you need. The ending capital account is the tax basis of
each member's position in the club. As such, it represents the amounts
paid in plus or minus the member's accumulated share of income/loss for
the time they were in the club. That is really the only figure you need.
Enter that as the beginning balance in bivio as the amount paid in, and
leave the accumulated earnings figure blank.

<<
I'm sure glad to know that I can enter only the member basis and still
generate correct tax forms. If I take this route, will it only impact
monies owed when a member leaves the club or when the club disbands?
>>

This is the route that I am suggesting above. It will impact nothing. As
long as you enter the ending capital account as the beginning balance in
the Member's paid in box, all your records will be correct, including
withdrawals and the disbanding of the club. It is really not necessary
to break down the member's tax basis between amount paid in and
accumulated earnings. You could probably do that, but it's not necessary
and involves a lot more work.

Rip West
Saint Paul, MN