Club based in NY, filing requirements for out of state residents

Brittany Barney on

Our club is based in NY but with members across a few different states. I was under the assumption that non-NY residents do not need to file NY state tax returns but a few members have expressed concern over this. Am I correct that only the club needs to file in NYS and not the individual members who do not live in NYS?

WILTSE on

If you have the correct address in the program for out of state partners, the Bivio return produced should state the # of non-resident partners. NY K-1's should not be produced for those partners. Regardless, investment income is only taxed by the RESIDENT STATE. Those out-of-state partners do not need to file a NY return!
Linda Wiltse

On February 28, 2021 at 1:55 PM "Brittany Barney via bivio.com" <user*38489000001@bivio.com> wrote:

Our club is based in NY but with members across a few different states. I was under the assumption that non-NY residents do not need to file NY state tax returns but a few members have expressed concern over this. Am I correct that only the club needs to file in NYS and not the individual members who do not live in NYS?

ira smilovitz on

Linda,

That's not entirely correct. A NY-based club will generate and must file IT-204-IP for all members, regardless of where they live. The IT-204-IP will be marked "non-resident" for those members who do not reside in NY. While the investment income may only be taxed by the resident state, if any of the members have a filing requirement in NY due to other aspects of their tax life, the information on the IT-204-IP will be used to calculate the proper amount of taxable income for the NY non-resident return. NY bases its non-resident tax on the proportion of NY source income to worldwide income where both amounts are calculated based on NY tax law. Differences between federal and NY tax law will be reported on the IT-204-IP.

Ira Smilovitz, EA

On Sun, Feb 28, 2021 at 2:42 PM WILTSE via bivio.com <user*31518000001@bivio.com> wrote:

If you have the correct address in the program for out of state partners, the Bivio return produced should state the # of non-resident partners. NY K-1's should not be produced for those partners. Regardless, investment income is only taxed by the RESIDENT STATE. Those out-of-state partners do not need to file a NY return!
Linda Wiltse

On February 28, 2021 at 1:55 PM "Brittany Barney via bivio.com" <user*38489000001@bivio.com> wrote:

Our club is based in NY but with members across a few different states. I was under the assumption that non-NY residents do not need to file NY state tax returns but a few members have expressed concern over this. Am I correct that only the club needs to file in NYS and not the individual members who do not live in NYS?

Brittany Barney on

Thank you, Ira. I have the IT-204-IP for myself (I am a resident of NY) but not for any of our other members. Should I, as the club treasurer, be able to access of these? Is there somewhere else to find that besides in the "taxes" tab? Just want to make sure I file the appropriate forms with NY state.

ira smilovitz on

Brittany,

I'm not sure I understand your question. If your club is based in NY, you need to file the complete IT-204 along with all of the IT-204-IPs. If your club is based outside of NY, you are only required to file the NY-resident IT-204-IPs, but you have to attach an additional statement. You can find the statement within the instructions for preparing the IT-204.

Ira Smilovitz, EA

On Tue, Mar 2, 2021 at 10:14 PM Brittany Barney via bivio.com <user*38489000001@bivio.com> wrote:

Thank you, Ira. I have the IT-204-IP for myself (I am a resident of NY) but not for any of our other members. Should I, as the club treasurer, be able to access of these? Is there somewhere else to find that besides in the "taxes" tab? Just want to make sure I file the appropriate forms with NY state.

Brittany Barney on

Thank you for your quick response. The club is based in NY but I am not seeing an IT -204. I am also not seeing IT-204-IP forms for anyone but myself and am not seeing any instructions in the Tax section of bivio. Am I looking in the wrong place?

Laurie Frederiksen on

If you have an Economy level subscription, you will not see state tax forms for NY. The program to prepare those is only included in the Preferred and higher levels.

Laurie Frederiksen
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On Tue, Mar 2, 2021 at 11:10 PM Brittany Barney via bivio.com <user*38489000001@bivio.com> wrote:

Thank you for your quick response. The club is based in NY but I am not seeing an IT -204. I am also not seeing IT-204-IP forms for anyone but myself and am not seeing any instructions in the Tax section of bivio. Am I looking in the wrong place?

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