Allocation of Income and Expenses

The Allocation of Income and Expenses Report shows the earnings that were allocated to members of the club at any time during the specified year. The report also shows any earnings remaining to be allocated at the end of the current year.

myICLUB.com adds allocated earnings to each member's tax basis in the club at the end of the year (Paid in Plus Earnings in the Members Status Report). The earnings are taxable income that each member should report on his or her personal tax return.

You can use this report to provide tax information for IRS Form 1065 and Schedule K-1. We suggest to print or save a PDF copy of this report at the end of each year, after you run the Allocation task (Accounting > Utilities > Allocate Income and Expenses).

Allocation of Income and Expenses Report Options

  • Select the “Year of Allocation” from the drop down list. Click “Submit” to view the report.

Click “follow this link” to recalculate the year-end allocation.

Allocation of Income and Expenses Report Description

 

There are two sections to the report:

  • Withdrawals During the Period
    • This section will not appear if there were no withdrawals during the year.

There is a row in this section of the report for each member who withdrew (full or partial withdrawal) during the year. The report shows the date of the withdrawal and the member’s and their share of each of the items.

  • Remaining Earning Allocated at Year-End

There is a row in this section of the report for each member who will receive an allocation of earnings at the end of the year. This shows the difference between the total income allocated and the amounts already allocated to all members who withdrew during the year.

 

Each section will have many of the same columns:

  • Non-Qual Div - Dividends that do not qualify for the lower tax rate as of the recent 2003 tax law changes. Changes to the tax laws in Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) define certain dividends as "qualifying" for lower tax rates if the shares are owned for 60 days in the window starting 60 days before the ex-dividend date and ending 60 days after the ex-dividend date.
  • Qual Div - Dividends that do qualify for the lower tax rate as of the recent 2003 tax law changes.
  • Int. - Taxable interest allocated.
  • Tax-Free interest - Tax-free interest allocated.
  • ST Cap Gain - Short Term Capital Gain allocated.
  • LT Cap Gain – Long term capital gain allocated.
  • Five Year Cap Gain - Five-year capital gain allocated (only applies up to 2003, when 5-year gains were eliminated)
  • Other Inc - Any other income received into a cash account
  • Inv. Exp - Investment expenses.
  • Non-inv. Exp - Any non-investment expenses taken from a cash account
  • Frgn Tax - Amount of foreign taxes paid out of dividends issued by foreign companies.
  • CharityCharitable contributions
  • Total – Sum of the other columns

Units – Units added to each member's account as a result of the allocation. By default, this does not appear on reports past 2010, which was the last year the system was set to add or subtract units at year-end.