Hello,

Here is the situation:
* The club has both New York and New Jersey members.
* New York address was used to obtain TAX Id and for all
  investment purposes.

Question:
Is the club required to file both
* New York (IT-204 Partnership Return and IT-204-IP NY
  Partner's Schedule K-1) for the NY resident partners
* AND New Jersey (NJ-1065 partnership Return and NJK-1
  Partner's share of income) for NJ resident partners?


Thanks you so much in advance!!

Dear Ira,
Thanks so much your reply.

Some clarification question if I can please.
1. You say that IT-204 / IT-204-IP must be filed for ALL members (which
includes NJ residents). Does that mean that the New Jersey member now has
to file NY state tax? I'm crossing my fingers for a no response.

2. In order for NJ resident to be able to e-file, the club needs to file
NJ-1065. Now, must the NJK-1 include all New York / New Jersey members as
well or submit it ONLY with the New Jersey resident NJK-1?

2A. I can get bivio to generate NJ-1065 and NJK-1 only by erroneously
entering state of NJ during the tax interview. If I choose this method, can
I simply cross out New Jersey address with the New York address and mail
the NJ state papers?

Thanks so much for you outstanding help!

Sincerely,
James

On Tue, 1 Mar 2011 13:27:04 -0500, iras1 <iras1@aol.com> wrote:
> If the club was established in NY it must file the IT-204 and IT-204-IP
> for all partners, not just the NY resident partners.
>
> NJ would like you to file the NJ-1065 return, but you don't have to.
> However, if you don't file the NJ-1065, your NJ members will not be able
to
> e-file their NJ-1040 personal return. They will have to file on paper.
(An
> NJK-1 is required for e-filing.)
>
> Ira Smilovitz
> Join me at InvestEd 2011
> Investor Education at Its BestTM
> San Diego, CA May 13-15, 2011
> http://www.investor-education2011.org/
>
>
> In a message dated 03/01/11 13:12:13 Eastern Standard Time,
> jameschoe@bivio.com writes:
> Hello,
>
> Here is the situation:
> * The club has both New York and New Jersey members.
> * New York address was used to obtain TAX Id and for all
> investment purposes.
>
> Question:
> Is the club required to file both
> * New York (IT-204 Partnership Return and IT-204-IP NY
> Partner's Schedule K-1) for the NY resident partners
> * AND New Jersey (NJ-1065 partnership Return and NJK-1
> Partner's share of income) for NJ resident partners?
>
>
> Thanks you so much in advance!!

Dear Ira,
Yes, thank you.. this helps a great deal.

Hopefully a final question on this thread.

After completing the Fed and State partnership return, I
have a member where the Federal and State K-1's have 0
(zero) for all entries as the member joined late in the year
and have no dividends nor expenses. Does this member still
have to file the K-1's with their personal income tax?

Best of Regards,
James

iras1 wrote:
> In a message dated 03/01/11 13:47:48 Eastern Standard Time, james@familychoe.com writes:
>
>
>
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> a.aolmailheader:hover {color:blue; text-decoration:underline; font-weight:normal}
>
> Dear Ira,
> Thanks so much your reply.
>
> Some clarification question if I can please.
> 1. You say that IT-204 / IT-204-IP must be filed for ALL members (which
> includes NJ residents). &nbsp;Does that mean that the New Jersey member now has
> to file NY state tax? I'm crossing my fingers for a no response.
> As long as the club doesn't do business in NY (that is, it invests in another partnership that operates a business in NY), the non-resident members will not have any NY-source income and won't have to file a NY personal income tax return.
>
> 2. In order for NJ resident to be able to e-file, the club needs to file
> NJ-1065. Now, must the NJK-1 include all New York / New Jersey members as
> well or submit it ONLY with the New Jersey resident NJK-1?
> Just like in NY, an NJK-1 will be filed for all members and as long as the club doesn't do business in NJ (that is, it invests in another partnership that operates a business in NJ), the non-resident partners will not have any NJ-source income and won't have to file an NJ-1040 personal return.
> &nbsp;
>
> 2A. &nbsp;I can get bivio to generate NJ-1065 and NJK-1 only by erroneously
> entering state of NJ during the tax interview. If I choose this method, can
> I simply cross out New Jersey address with the New York address and mail
> the NJ state papers?
> No need to cross out. You should be able to edit the pdf file before printing. There are a few other things you should be aware of when preparing the NJ-1065 return. First, make sure that the check box for Hedge Fund is checked. (It may seem strange, but it's correct.) Second, if your club has total assets (as of 12/31/10) of less than $302,300 and less than $42,400/partner (total number of K-1s, not just the active partners on 12/31), make sure the check box for Investment Club is checked. This will exempt you from paying the $150/partner Partnership Filing Fee. If your club exceeds either of those limits, post that info (that is, that you exceed the limit, not the actual dollar amounts) and we can discuss how else to avoid the fee. Finally, if you have 10 or more partners, you must file the NJ-1065 electronically.&nbsp;There are some additional things you'll need to know to do this. If&nbsp;this applies to your club, just ask again and I'll try to walk you through what
> you need to do.
> &nbsp;
> Hope this helps.&nbsp;
>
>
>
>
> Ira Smilovitz
>
>
>
> Join me at InvestEd 2011
> Investor Education at Its BestTM
> San Diego, CA May 13-15, 2011
> http://www.investor-education2011.org/
> &nbsp;