Elect out of subchapter k

Jane Lafave on

Hi,

I wondered if any clubs ever complete this election and then
just use spreadsheet allocations going forward?

JL

Rip West on

Jane, if you are talking about the 761 election not to be considered a partnership for tax purposes, the answer is no. By definition, investment clubs are not eligible for this election since they do not own their assets as co-partners, and since they can't determine each member's share of the income/expense items without computing the total partnership income. See

http://www.bivio.com/trez_talk/mail-msg?t=101500003

I'm not sure that i really understand your question, though. Why would you want to use spreadsheet allocations when you are using bivio?

Rip West
Saint Paul, MN

Jane Lafave on

Rip,

Thanks for your response which is right on target and
addressed exactly what I was asking. As much as bivio does
the allocation, I thought it more expedient (and frankly it
would save a lot of paper) just to elect out, complete the
spreadsheet and send it to the applicable partners.

I had asked at a CPE conference last fall whether it was
permissible and was advised it is.

Sounds like the safest bet is to continue to file.

thanks for your response,

Jane

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