Matching Your 1099 Doesn't Mean You Have Correct Taxes

It seemed this year that there were an unusually high number of clubs that were trying all sorts of creative (and wrong) ways to adjust their club records to get bivio to match their 1099's. Unfortunately, even if they did, it didn't mean their taxes were right.

I think it is important to remind everyone that your club tax reporting is not like your personal tax reporting. On club taxes your taxable income gets divided up between your members. Even if 1099 income agrees with bivio in total, it doesn't mean it will be divided up correctly between your members.

If your club accounting is not right, your member records will not be right. That means your taxable income won't be divided up correctly between your members and your taxes will not be right even if you've figured out some way to get bivio to match your 1099.

For example, if your cash balance and/or number of shares in bivio does not agree with what your broker shows, your valuations will not be right in bivio. Valuations affect your member accounting.

It's time to do some spring cleaning on your club records. If you have stocks listed in bivio that don't exist anymore or the cash balance shown for your financial accounts doesn't agree with what the broker shows, you have issues you need to address.

I'd recommend you make a club agenda item for your meeting this month to double check these two things. We tell you to do that every month, but if you haven't been, there's no better time than now to start doing it.

Laurie Frederiksen
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