Couple Questions from a Newbie

Jill Thurston on

Good Morning, I have a couple of questions our outgoing treasurer has. First how and what time frame are the percentages calculated for the K-1? We have members that do not want information sent to their homes including their K-1’s how are these handled. Are the K-1’s done as a file that we download? Lastly, (for now) how are the tax returns handled, are they something we download? Thanks in advance for the help. This transition is easier then I thought it would be. Jill

iras1 on

The percentages shown on the K-1 are usually those as of 1/1/xx and 12/31/xx (though there are some exceptions). However, for the purposes of calculating the reportable amounts of income and expense, the percentage is calculated separately for each transaction during the year using the ownership share on that date.

You can send K-1s to any address you want. The address printed on the K-1 itself, however, should be the home address of the member.

When you run the tax program, everything is generated as a series of pdf files. You can have your members download their own K-1s or the treasurer can download them all and distribute them.

Similarly, the treasurer must download, print, and assemble all of the parts of the 1065 filing and send them to the IRS. Don't forget to complete your state equivalent of Form 1065 if your state requires it. bivio will prepare some states, but not all.

Ira Smilovitz

In a message dated 03/26/09 06:10:53 Pacific Daylight Time, jillt@bhcg.com writes:

Good Morning, I have a couple of questions our outgoing treasurer has. First how and what time frame are the percentages calculated for the K-1? We have members that do not want information sent to their homes including their K-1's how are these handled. Are the K-1's done as a file that we download? Lastly, (for now) how are the tax returns handled, are they something we download? Thanks in advance for the help. This transition is easier then I thought it would be.

Alicia Peycelon on

Jill Thurston wrote:
> Good Morning, I have a couple of questions our outgoing
> treasurer has. First how and what time frame are the percentages calculated for
> the K-1? We have members that do not want information sent to their homes
> including their K-1’s how are these handled. Are the K-1’s done as
> a file that we download? Lastly, (for now) how are the tax returns handled, are
> they something we download?  Thanks in advance for the help. This transition is
> easier then I thought it would be.  Jill

I really can't answer the first question. We use the Tax
Interview provided with our Bivio service and over the years
no issues have come up with the K-1s.

The K-1s can be downloaded by each individual from the Bivio
site (once you've completed your tax interview and generated
your tax documents.) Or the treasurer can print them and
distribute them at your next meeting. Personally, I think
that is a pain and since we require our members to be
internet enabled/savvy, they can download them.

The Bivio service comes with the Tax Interview that walks
you through some data entry, then you generate your tax
document, print and mail it.

I *highly* recommend you send it to the IRS via certified
mail: the IRS didn't recieve our return one year and we had
to have an attorney's help to write letters etc pleading our
case. If they had not taken pity on us, we'd have faced a
stiff penalty.

Best regards,
Alicia

Treasurer
Steel Magnolias Investment Club

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