John's response is a bit too absolute. REITs cause extra work for club treasurers because their "dividends" usually contain multiple components: qualified and ordinary dividends, capital gain distributions, and returns of capital. Often, the nature of the division of the cash received isn't known until after the end of the tax year so the treasurer has to go back and edit old transactions.

However, for those treasurers who don't mind the extra work, bivio can handle REITs without a problem. The same cannot be said for partnerships. Dealing with the tax consequences of partnership distributions is beyond the scope of services provided by any investment club accounting software.

Ira Smilovitz

On Thu, Nov 14, 2013 at 9:54 PM, John Rice <rice.j1969@att.net> wrote:

The short answer is "Yes". This also includes partnerships. Bivio has a list of stocks to avoid.

John Rice

ABODI Investment Club

From: LINDA MACDOUGALL <smacdo1951@aol.com>
To: club_cafe@bivio.com
Sent: Thursday, November 14, 2013 4:24 PM
Subject: [club_cafe] REITs

I know in the past that we had been warned against
purchasing REITs in investment club portfolios. Is that
still the case? Does it cause a problem at tax time? Thank
you. Linda