THis question may be answered in the tax webinar, but here goes:
OUr investment club is very new, we began in July, 2009 and bought our first stocks in late August of 2009. Therefor, we have made very little money.
TD Ameritrade (our broker) says that they do not send 1099's, nor do we need to file a 1099, since we have made under $10 in combined interest, dividends and sales.
We did not lose any money--we made a grand total of .16 cents!
Yes, you must file as long as you had any income or expense, no ifs ands or buts. While TD Ameritrade doesn't have to issue a 1099 if you earned less than $10, there is no such minimum threshold for issuing K-1s. If you fail to file your 1065, the IRS will come calling since they have your club's EIN and are expecting a partnership return.
In a message dated 02/19/10 17:37:00 Eastern Standard Time, thatgirl@ellenswebsite.com writes:
THis question may be answered in the tax webinar, but here goes:
OUr investment club is very new, we began in July, 2009 and bought our first stocks in late August of 2009. Therefor, we have made very little money.
TD Ameritrade (our broker) says that they do not send 1099's, nor do we need to file a 1099, since we have made under $10 in combined interest, dividends and sales.
We did not lose any money--we made a grand total of .16 cents!
My questions are:
1. Can someone confirm that this is correct?
2. Do we still have to file individual K-1s?
Ellen Shershow on
Ira,
Got it. Thank you!
I am signed up to take the tax webinar on Sunday, so again, this question may be answered then, but my understanding was the the club as a whole filed a 1099, and each individual member filed a K-1. What is a 1065?
Yes, you must file as long as you had any income or expense, no ifs ands or buts. While TD Ameritrade doesn't have to issue a 1099 if you earned less than $10, there is no such minimum threshold for issuing K-1s. If you fail to file your 1065, the IRS will come calling since they have your club's EIN and are expecting a partnership return.
THis question may be answered in the tax webinar, but here goes:
OUr investment club is very new, we began in July, 2009 and bought our first stocks in late August of 2009. Therefor, we have made very little money.
TD Ameritrade (our broker) says that they do not send 1099's, nor do we need to file a 1099, since we have made under $10 in combined interest, dividends and sales.
We did not lose any money--we made a grand total of .16 cents!
My questions are:
1. Can someone confirm that this is correct?
2. Do we still have to file individual K-1s?
iras1 on
The club files a 1065. As part of the 1065, there is a Schedule K-1 for each partner. A copy of the K-1 is given to each partner who then transfers information from the K-1 to various places on their 1040 and associated schedules.
In a message dated 02/19/10 20:58:04 Eastern Standard Time, thatgirl@ellenswebsite.com writes:
I am signed up to take the tax webinar on Sunday, so again, this question may be answered then, but my understanding was the the club as a whole filed a 1099, and each individual member filed a K-1. What is a 1065?
Ellen Shershow on
Got it!
Thanks again! I look forward to learning more on Sunday.
The club files a 1065. As part of the 1065, there is a Schedule K-1 for each partner. A copy of the K-1 is given to each partner who then transfers information from the K-1 to various places on their 1040 and associated schedules.
I am signed up to take the tax webinar on Sunday, so again, this question may be answered then, but my understanding was the the club as a whole filed a 1099, and each individual member filed a K-1. What is a 1065?