club_cafe: out of state potential member/s?

iras1 on

In a message dated 8/9/2007 3:41:39 P.M. Eastern Daylight Time, etana_finkler@bivio.com writes:

Our club is in Maryland. Our last treasurer said that it was
too difficult for her to use CAO for members who lived in
Virginia or Wash DC, and we did not admit members who didn't
live in MD.

Now we are on bivio, with a new treasurer. How difficult
will it be to have a member whose residency is Washington DC
in our Maryland club? (I assume it is the state taxes???
which I'm already afraid will be time consuming and
confusing...)

There shouldn't be any problem with out-of-state members for a club based in MD provided your club doesn't invest in another partnership that has actual business income which is sourced to MD. See the instructions for MD Form 510 for the exceptions to completing lines 5-13. If your club cannot meet the exception (most clubs do meet it), you will have problems dealing with nonresident members as the club will have to pay a nonresident tax.

Ira Smilovitz

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Etana Finkler on

Ira, I get chills thinking about doing taxes for the club
(rather, helping the treasurer, neither of us has any clue
to complleting taxes)... Makes me want to disband the club
to avoid it.

what does this mean?
>your club doesn't invest in another partnership that has actual business >income which is sourced to MD

If we are only investing in stocks, and none of the stocks
are companies in Maryland or DC, then it shouldn't be more
difficult than it will be with the MD members... Is that
what you said?

thanks, Etana

Etana Finkler on

Ira, I get chills thinking about doing taxes for the club
(rather, helping the treasurer, neither of us has any clue
to complleting taxes)... Makes me want to disband the club
to avoid it.

what does this mean?
>your club doesn't invest in another partnership that has actual business >income which is sourced to MD

If we are only investing in stocks, and none of the stocks
are companies in Maryland or DC, then it shouldn't be more
difficult than it will be with the MD members... Is that
what you said?

thanks, Etana