Tax status of promotional trades
From the Trez_Talk mailbag.....
Our broker offered [and our club took advantage of] one free trade [seemingly valued at 19.95] for every $100 electronically transferred from a club member's account to the brokerage account.   How is this treated tax-wise?  Can the gain be postponed to  the time when the trade is executed or is it a simple short-term  gain to the partnership?
I don't view these free trades as a capital gain or income to your club.    While these free trades may accrue to your club brokerage account, they really have no value or impact on your club books until you make a trade.  At that point you would simply enter a stock purchase or sale transaction with $0 as the commission amount.

On the other hand, if your broker is actually crediting your brokerage account with $19.95 every time you transfer $100, this would be a different story. That $19.95 would be cash income to the club and it should be entered into your clubs books as such at the time that it is actually credited to your account.