| Club officers can check the
Allocate per Partnership Exception box
on the
Account Expense
form.
When checked, the expense amount affects the number
of units for each member. The number of units to debit
is computed by dividing the expense amount by the
Unit Value on the date of the expense.
This allocates an equal dollar amount of the expense to each member.
If left unchecked, expenses are allocated per IRS instructions.
Each member pays an equal percentage of their club ownership toward
the expense.
Note - the selection of Allocate per Partnership Exception
should only be made if such selection is expressly defined and
permitted in the clubs partnership agreement and such selection
is in accordance with IRS regulations.
Per section 1.704-1 of the IRS Treasury Regulations,
http://edocket.access.gpo.gov/cfr_2007/aprqtr/26cfr1.704-1.htm
For more information about the
Account Expense form,
please read
Account Transactions.
|
