|
What's the difference between Time-based and Nontime-based Distributions?
The nontime-based method distributes the tax
liabilities to members based on the percentage of the club owned by each member at the end
of the distribution period. Thus, if a member joined the club on September 1, all gains
and losses that occurred before September 1 as well as those that occurred on or after
September 1 will affect his or her tax liability.
The time-based distribution method distributes tax
liabilities to members based on the percentage of ownership in the club by each member on
the date each income or expense item occurred during the distribution period. Thus, if a
member joined the club on September 1, only those gains and losses that occurred on or
after September 1 will affect his or her tax liability.
|
