You can’t avoid the tax, but you can avoid the rush. Get your investment club ready for Tax Season early by pre-ordering your Federal and State Club Tax Printers from ICLUBcentral — the No. 1 tax preparation software for investment clubs.
Pre-order now and save — pay just $89.99 if you order before December 31, 2013. StockCentral members save even more, and pay just $59.99!
Club Accounting 3.2 Tax Printers can be purchased as either a download or as a pressed CD. Club Accounting Online Tax Printers will be accessible under the Taxes tab on your myiclub.com website following purchase.
To receive discounts on ICLUBcentral software, including the lowest available prices for the 2013 Club Tax Printers, join StockCentral.com today!
Frequently Asked Questions about Investment Club Tax Preparation
Does my investment club have to file a tax return with the IRS?
While investment clubs that are formed as general partnerships do not have to pay taxes directly to the IRS, every investment club must file an informational return with the IRS. It doesn’t matter how new your club is, whether or not you had any income during the year, whether or not you bought or sold any securities — you must still file the appropriate forms with the IRS.
What forms do I have to submit?
To file your club’s Federal tax returns with the IRS, you’ll need to complete three different kinds of forms. Form 1065 is used by General Partnerships (like your investment club) to file their taxes with the IRS. It’s what is called a “pass-though” document — it allows the liabilities of the total tax due to be “passed-through” to the members of the partnership.
Schedule D is part of Form 1065 and covers the Capital Gains and Losses for your club. Schedule K-1 is an individualized report specific to each member of your club covering their individual share of the tax liability. Each member receives their own Schedule K-1 which they must submit to the IRS with their personal tax returns.
ICLUBcentral’s Federal Club Tax Printer software includes all sections of Form 1065, and allows you to print out a Schedule K-1 for each member of your club.
What about the state taxes?
Tax filing procedures differ from state to state. Some states do not require investment clubs to file returns, while others provide stiff penalties for investment clubs that do not file. Contact your state’s tax agency (such as the Department of Revenue or Department of Taxation) for more information about your particular state’s requirements. Note that tax laws do change, so even if a state did not require filings in the past, they may have changed their requirements for the 2013 tax year.
All clubs that are located in Arizona, California, Colorado, Georgia, Indiana, Iowa, Maryland, Massachusetts, Minnesota, Missouri, New Jersey, New York, or Pennsylvania must file a return with their state agencies. Fortunately, clubs in these states can use ICLUBcentral’s State Club Tax Printer software to generate the necessary forms.
Clubs that are located in California, Massachusetts, or New Jersey should also be aware that they are subject to certain conditions.
Please note that even if ICLUBcentral does not offer a State Club Tax Printer for your state, you may still need to file a state return, so check with your state tax agency for specific requirements.
Finally, an increasing number of states require partnerships to file a return if the partnership has any partner who resides in that state, regardless of where the partnership is officially located. This may require some clubs to file with more than one state tax agency. To determine whether or not your club needs to file in adjacent states, please contact the appropriate state tax agency.
* A special note about “Draft” and “Final” forms: Tax printers are initially released using “draft” forms. Final forms will be released and automatically updated in your tax printer when forms are approved by the IRS and the appropriate state agencies, which could occur as early as mid-January or as late as early March. By installing the draft forms package, you can make sure that the program works correctly and that you have entered the necessary data properly. Then, when final forms are released, you can quickly prepare and print final forms for your club members. You may not prepare your club tax filings before you have received final year-end documents from your club’s financial institutions, which by law do not have to arrive until February 15.
BetterInvesting is a national nonprofit organization that has been empowering individual investors since 1951. Founded in Detroit, the association (formerly known as National Association of Investors Corporation) was born out of the conviction that anyone can become a successful long-term investor by following commonsense investing practices. BetterInvesting has helped more than 5 million people become better, more informed investors by providing webinars, in-person events, easy-to-use online tools for analyzing stocks and mutual funds, a monthly magazine and a community of volunteers and like-minded investors. For more information about BetterInvesting, visit its website at http://www.betterinvesting.org/investing/landing/openhouse/blog/index.html or call toll free (877) 275-6242.
ICLUBcentral Inc. develops powerful, commonsense tools for investment clubs and independent investors, including software products such as Toolkit 6, the StockCentral.com Web investing portal, the myICLUB.com club accounting service, MyStockProspector stock screen program and the market-beating Investor Advisory Service newsletter. ICLUBcentral, a wholly owned for-profit subsidiary of nonprofit investment education association BetterInvesting, has remained true to BetterInvesting’s fundamental investing principles while serving millions of individual investors striving for financial freedom. For more information, visit www.iclub.com.
ICLUBcentral Inc. develops powerful, commonsense tools for investment clubs and independent investors, including software products such as Toolkit 6, the StockCentral.com Web investing portal, the myICLUB.com club accounting service, MyStockProspector stock screen program and the market-beating Investor Advisory Service newsletter. ICLUBcentral, a for-profit subsidiary of nonprofit investment education association BetterInvesting, has remained true to BetterInvesting’s fundamental investing principles while serving millions of individual investors striving for financial freedom. For more information, visit www.iclub.com.
- See more at: http://blog.betterinvesting.org/investing/betterinvesting-top-100-index-tracking-main-street-investors-holdings-outgains-sp-index-for-past-five-years-despite-august-dip/#sthash.H1u2QxdR.dpuf