We had a person withdraw from our club this year and when I
did our taxes there was this comment attached to the end
with a withdrawal report for this person.
"The withdrawal reports which follow should be distributed
to
the members for use in completing their 1040 Schedule D.
Do not include the withdrawal reports in the documents sent
to the IRS."
Our members are asking why they need this report to do their
taxes.
John Rice on
I would assume it is because depending on what investment you have the the type of distribution that you received can change at the end of the year. If it did change then the withdraw report that was done when they withdrew would be incorrect.
We had a person withdraw from our club this year and when I
did our taxes there was this comment attached to the end
with a withdrawal report for this person.
"The withdrawal reports which follow should be distributed
to
the members for use in completing their 1040 Schedule D.
Do not include the withdrawal reports in the documents sent
to the IRS."
Our members are asking why they need this report to do their
taxes.
Laurie Frederiksen on
The withdrawal report needs to be given to the member who took the withdrawal because there may be tax consequences from it. They would need to be reported on their personal tax forms in addition to the information from their K-1.
Here is information on what is on a withdrawal report:
It needs to be regenerated when you prepare taxes because if you made any changes to your data after you entered the withdrawal, the original report would have been updated.
Laurie Frederiksen Invest with your friends! www.bivio.com
I would assume it is because depending on what investment you have the the type of distribution that you received can change at the end of the year. If it did change then the withdraw report that was done when they withdrew would be incorrect.
We had a person withdraw from our club this year and when I
did our taxes there was this comment attached to the end
with a withdrawal report for this person.
"The withdrawal reports which follow should be distributed
to
the members for use in completing their 1040 Schedule D.
Do not include the withdrawal reports in the documents sent
to the IRS."
Our members are asking why they need this report to do their
taxes.
Karen Wilson on
Are you saying that it only needs to be given to the person who withdrew from the club.
On Tuesday, March 10, 2020, 10:31:10 AM CDT, Laurie Frederiksen <laurie@bivio.biz> wrote:
The withdrawal report needs to be given to the member who took the withdrawal because there may be tax consequences from it. They would need to be reported on their personal tax forms in addition to the information from their K-1.
Here is information on what is on a withdrawal report:
It needs to be regenerated when you prepare taxes because if you made any changes to your data after you entered the withdrawal, the original report would have been updated.
Laurie Frederiksen Invest with your friends! www.bivio.com
I would assume it is because depending on what investment you have the the type of distribution that you received can change at the end of the year. If it did change then the withdraw report that was done when they withdrew would be incorrect.
We had a person withdraw from our club this year and when I
did our taxes there was this comment attached to the end
with a withdrawal report for this person.
"The withdrawal reports which follow should be distributed
to
the members for use in completing their 1040 Schedule D.
Do not include the withdrawal reports in the documents sent
to the IRS."
Our members are asking why they need this report to do their
taxes.
Laurie Frederiksen on
Yes. The pages following the page that says
"The withdrawal reports which follow should be distributed to the members for use in completing their
1040 Schedule D. Do not include the withdrawl reports in the documents sent to the IRS"
Don't need to be sent to the IRS. You should make sure the withdrawn member gets a copy and keep a copy with your club records.
Laurie Frederiksen Invest with your friends! www.bivio.com
Are you saying that it only needs to be given to the person who withdrew from the club.
On Tuesday, March 10, 2020, 10:31:10 AM CDT, Laurie Frederiksen <laurie@bivio.biz> wrote:
The withdrawal report needs to be given to the member who took the withdrawal because there may be tax consequences from it. They would need to be reported on their personal tax forms in addition to the information from their K-1.
Here is information on what is on a withdrawal report:
It needs to be regenerated when you prepare taxes because if you made any changes to your data after you entered the withdrawal, the original report would have been updated.
Laurie Frederiksen Invest with your friends! www.bivio.com
I would assume it is because depending on what investment you have the the type of distribution that you received can change at the end of the year. If it did change then the withdraw report that was done when they withdrew would be incorrect.
We had a person withdraw from our club this year and when I
did our taxes there was this comment attached to the end
with a withdrawal report for this person.
"The withdrawal reports which follow should be distributed
to
the members for use in completing their 1040 Schedule D.
Do not include the withdrawal reports in the documents sent
to the IRS."
Our members are asking why they need this report to do their
taxes.