expenses spred around?
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expenses spred around? Lets say I spend $20.00 on stamps etc., A Co-Partner spends $150.00 on a computer mainly for club use. and another spends what ever on what ever (log book, paper). HOW DOES ONE GET CREDIT FOR THE DEDUCTION as an expense? Is there a place to log such am item for the individual? Or does the whole club get a portion of the deduction? Or finally do we just put it on our own 1040 form? Thanks for the help. William, one reimburses each person for what they have spent, backed up by receipts, and enters the expense in the program as deductible expenses, allocated by Membership Share. At the end of the year, the expenses are distributed on the Allocation of Expenses report to each person by form K-1 for them to use in filing their personal returns. Gene Rooks, Space Coast Chapter In our club, everyone would be reimbursed for their approved expenses through the general fund. Each person would then get a percentage of the deductible expenses at the end of the year, based on their percentage in the club. I highly doubt a computer used "mainly for club purposes" would be deductible. The IRS has a computer system that watches for certain "words", and I personally wouldn't want to attempt a deduction that would flag my account for an audit--like party, flowers, plane fare, computers, big screen TVs, etc. But then, that's just me. > HOW DOES ONE GET CREDIT FOR THE DEDUCTION as an expense? If you are reimbursed, you don't get credit. However, rather than having my club reimburse me, I've had them credit the reimbursement to my capital account which buys me more units. That a fair way of handling expenses, too. Lynn Ostrem, President garbagecop@earthlink.net Crow River Investment Club www.bivio.com/crowriver |
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