club_cafe: Re: out of state potential member/s?

iras1 on

I don't know how the NC tax department works, but most won't know what to do with an unexpected letter. It's probably much simpler to just not file. If/when they notice that you haven't filed and send a letter asking for your return, you can reply citing the exemption for investment clubs.

Ira Smilovitz

In a message dated 8/11/2007 1:55:06 P.M. Eastern Daylight Time, starrwp@earthlink.net writes:

I can't open your first link, but the second one is pretty clear!!! Do you think I just shouldn't send them the usual stuff this year or do I need to write them a letter explaining why I am not sending the usual?

----- Original Message -----

From: IraS1@aol.com

To: club_cafe@bivio.com

Sent: Saturday, August 11, 2007 1:25 PM

Subject: Re: club_cafe: Re: out of state potential member/s?

In a message dated 8/11/2007 1:05:06 P.M. Eastern Daylight Time, starrwp@earthlink.net writes:

My Investment Club is in North Carolina and we have to file an income tax
form to the State. I file a D-403 Partnership Income Tax Return and I
include 403 part 3.A. We are an investment club and our sole activity is
investing. The State has never said I didn't need to file it.

According to the instructions for NC Form D-403, certain investment partnerships are exempt from filing. For specifics see Directives PD-04-1 http://www.dornc.com/practitioner/individual/directives/pd-04-2.pdf and PD-02-1. http://www.dornc.com/practitioner/individual/directives/pd-02-1.html. As long as your investment club does not invest in another partnership (this would include PTPs and LLPs) or certain other types of investments, you do not have to file.

Ira Smilovitz

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