Allocation of Income and Expenses (Formerly Distribution of Earnings)
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
The columns displayed in the report are:
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.
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 taxes – foreign taxes paid
Charity – charitable contributions
Total – sum of the other columns
Units – units added to each member's account as a result of the distribution
There are two sections to the report:
Withdrawals During the Period section
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.
