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Topic: Tax Related Question
NYS requires that partnerships with a NY resident partner file an IT-204 even if the partnership isn't registered in NY. You only have to report information about the NY resident partner. There is no NYC partnership return.
 
Ira Smilovitz
 
In a message dated 12/1/2011 11:05:28 P.M. Eastern Standard Time, telcontar11@verizon.net writes:
The investment club I'm in is a N.J. partnership. One of our
members is moving to NYC this month. Does this in anyway
affect the partnership - i.e. will we have to file a NY
state and city return now as well?

I know that the member will have to include any profit/loss
from the club in his individual returns, but just want to
understand if there is any impact on the club beyond tax
reports due to the member.

Thanks for the help,
Thanks, Ira.

Question for Bivio - If the NY partner's address is on
record, will the Bivio tax preparation program generate the
required form for NY state filing (IT-204) in addition to
the NJ tax forms?

Thanks,

Nick Picini
Hi Nick,

It won't do this automatically based on a members address. 

However,  you can "trick" the program to run the reports for another state we offer by temporarily changing the state you've entered for your official club address.

Then you'd just need to manually adjust this back on the forms you send in.

--
Laurie Frederiksen
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Laurie,

We've finally gotten our 1099 form and I just want to check
on a couple of questions:

1. Since we moved our account to Fidelity in 2010, the 1099
doesn't indicate the cost basis for 2 of our stocks. The
1099 does indicate that the stocks that were sold are long
term holdings which is correct. Is this an issue?

2. Based on my earlier emails, we are a NJ partnership that
now has a NY member. This will require submitting a NY
return with just the NY member's K1 attached.

a. Do we need to indicate that all other members are NJ
residents?

b. In order to create a NY return, I need to change the club
address to a NY one, which will then allow me to create a
separate NY return. I would then need to manually correct
the address prior to filing?

c. On the NJ return, will I only need to submit the NJ
partners' K1 or do I need to inlcude the NY partner since he
was a NJ resident for 11 months of the year?

Thanks,

Nick
Laurie,

Any answers to these questions?

Thanks,

Nick
Dear Nicolas,

Sorry about the delay.   The answers to your questions are below:
 
1. Since we moved our account to Fidelity in 2010, the 1099
doesn't indicate the cost basis for 2 of our stocks. The
1099 does indicate that the stocks that were sold are long
term holdings which is correct. Is this an issue?

Brokers only need to report cost basis on 1099's for stocks which you sold and had purchased starting in 2011.  These are called "Covered" securities.  All other information is optional.   You still have to report the cost basis on the schedule D on your tax form however.  If you've made all your entries in bivio correctly, bivio will calculate this and report it correctly for you.
 

2. Based on my earlier emails, we are a NJ partnership that
now has a NY member. This will require submitting a NY
return with just the NY member's K1 attached. 

a. Do we need to indicate that all other members are NJ
residents?

The program will know residency based on the member addresses in your records.

b. In order to create a NY return, I need to change the club
address to a NY one, which will then allow me to create a
separate NY return. I would then need to manually correct
the address prior to filing?

Yes.

c. On the NJ return, will I only need to submit the NJ
partners' K1 or do I need to inlcude the NY partner since he
was a NJ resident for 11 months of the year?

Yes.  He'll need a K-1 if he was a resident for any part of the year.

--
Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend!  www.facebook.com/bivio
Follow us on twitter!  www.twitter.com/bivio
Laurie,
 
Thanks for the response.
 
I notice that the Bivio site states that State Taxes for NJ will be available in mid February. Are there any updates on that?
 
Also, are State Taxes for NY currently available?
 
Thanks,
 
Nick
 
Sent: Tuesday, February 21, 2012 1:07 PM
Subject: Re: [club_cafe] Re: Tax Related Question
 
Dear Nicolas,

Sorry about the delay.   The answers to your questions are below:
 
1. Since we moved our account to Fidelity in 2010, the 1099
doesn't indicate the cost basis for 2 of our stocks. The
1099 does indicate that the stocks that were sold are long
term holdings which is correct. Is this an issue?

Brokers only need to report cost basis on 1099's for stocks which you sold and had purchased starting in 2011.  These are called "Covered" securities.  All other information is optional.   You still have to report the cost basis on the schedule D on your tax form however.  If you've made all your entries in bivio correctly, bivio will calculate this and report it correctly for you.
 

2. Based on my earlier emails, we are a NJ partnership that
now has a NY member. This will require submitting a NY
return with just the NY member's K1 attached.

a. Do we need to indicate that all other members are NJ
residents?

The program will know residency based on the member addresses in your records.

b. In order to create a NY return, I need to change the club
address to a NY one, which will then allow me to create a
separate NY return. I would then need to manually correct
the address prior to filing?

Yes.

c. On the NJ return, will I only need to submit the NJ
partners' K1 or do I need to inlcude the NY partner since he
was a NJ resident for 11 months of the year?

Yes.  He'll need a K-1 if he was a resident for any part of the year.

--
Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend!  www.facebook.com/bivio
Follow us on twitter!  www.twitter.com/bivio
Hi Nick,

We are still waiting for the state approvals on the NJ taxes.  They should be coming soon.  We will announce it here when they are released.

NY, CO, CA and PA state taxes are already released.

--
Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend!  www.facebook.com/bivio
Follow us on twitter!  www.twitter.com/bivio