| Each year a club will likely realize interest, income, dividends,
capital gains, and/or deductible expenses. Since most clubs are
formed as partnerships, those taxable and reportable items must be
allocated between the members of the partnership. Each member's
allocable share is then reported on the partnership tax return and
subsequently carried to each member's individual tax return. bivio
allows your club to choose one of two methods of allocation. Time
Based or Snapshot. An officer of the club must make this election
on your club Taxes page.
Time Based allocations are made in proportion to each members
ownership in the club on the date that each taxable item is realized
by the club. This method is used by most clubs.
Since Time Based allocations are ongoing throughout the tax year, if
your club elects Time Based, you will be able to view the
Member Tax Allocations Report
under Reports at any time throughout the year.
This offers a club and it's members the ability to see the year to
date (YTD) allocations.
The Snapshot methodology allocates all taxable items based on
each members proportional ownership at the end of the tax year. If a
member withdraws, bivio makes an interim allocation for the member
making the withdrawal based on that members proportional ownership as
of the date of the withdrawal. This methodology was historically used
by clubs that did their accounting by hand.
Since Snapshot allocations are done based on proportional ownership at
the end of the tax year, if your club elects Snapshot there is no
partial year or interim
Member Tax Allocations Report
available under Reports.
A year end
Member Tax Allocations
is available under Taxes.
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