Disolving partnership and tax implications
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Disolving partnership and tax implications Hi, We voted to close our club after 12 years. We have already notified our trade account and received the check from them. My question is, if we send out the payments to each partner, must they be deposited by the members and clear the checking account prior to the end of the year (2011) so we do not have to file taxes for the year 2012? We will file our 2011 taxes and would like those to be the final tax year for the partnership. Thank you. OCDN Investments... Dear Jaymie, We are sorry to hear your club is disbanding. As long as you distribute the checks to the members prior to the end of 2011, the tax issues associated with them will be 2011 ones both for your club and for your members. It does not matter whether they wait until 2012 to cash them. A bigger issue disbanding clubs face this late in the calendar year is the possibility they they may yet receive income in the form of dividends in 2012. That would be 2012 income you'd have to report. -- Laurie Frederiksen Invest with your friends! www.bivio.com Become our Facebook friend! www.facebook.com/bivio Follow us on twitter! www.twitter.com/bivio Laurie, Thank you so much for your input and the information. We appreciate it. There was only one active stock that paid dividends and they had paid out in December two days prior to us shutting down the trade account. We have not closed the trade accoutn officially as of yet. I will contact them and see what they say about the dividend payout. Thanks again for the heads up! Jaymie |
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