Allocation of Income and Expenses

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

Club Accounting Online adds distributed 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. Print this report at the end of each year, after you run the Allocation task (Accounting > Utilities > Allocate Income and Expenses). Distribute this report to members for use in preparing their individual tax returns.

Allocation of Income and Expenses Report Options

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

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

Allocation of Income and Expenses Report Description

 

There are two sections to the report:

  • Withdrawals During the Period section - Note 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 Distributed at Year-End

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

 

Each section will have many of the same columns:

  • Non-Qualifying Dividends - 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.
  • Qualifying Dividends - Dividends that do qualify for the lower tax rate as of the recent 2003 tax law changes. See above.
  • Interest - Taxable interest distributed.
  • Tax-Free interest - Tax-free interest distributed.
  • Short term capital gain - STCG distributed.
  • Long Term Capital Gain – Long term capital gain distributed.
  • Five Year Capital Gain - Five-year capital gain distributed (only applies up to 2003, when 5-year gains were eliminated)
  • Other income - Any other income received into a cash account
  • Expense - Nondeductible expenses paid out of a cash account other than Petty Cash.
  • Foreign Taxes Paid - Amount of foreign taxes paid out of dividends by the company making the distribution.
  • Expense (non-deduct) - Any other non-deductible expenses taken from a cash account
  • Foreign taxesForeign taxes paid
  • CharityCharitable contributions
  • Total – Sum of the other columns
  • Units – Units added to each member's account as a result of the distribution; may not show, if the club is not set to adjust units at the end of the year. This is the default for all years past 2010.