Investment Club Tax Printer Software
2018 Federal & State Club Tax Printers Coming in November/December 2018
Frequently Asked Questions about Investment Club Tax Preparation
Does my investment club have to file a tax return with the IRS?
- While investment clubs that are formed as general partnerships do not have to pay taxes directly to the IRS, every investment club must file an informational return with the IRS. It doesn't matter how new your club is, whether or not you had any income during the year, whether or not you bought or sold any securities -- you must still file the appropriate forms with the IRS.
What forms do I have to submit?
- To file your club's Federal tax returns with the IRS, you'll need to complete three different kinds of forms. Form 1065 is used by General Partnerships (like your investment club) to file their taxes with the IRS. It's what is called a "pass-though" document -- it allows the liabilities of the total tax due to be "passed-through" to the members of the partnership.
- Schedule D is part of Form 1065 and covers the Capital Gains and Losses for your club. Schedule K-1 is an individualized report specific to each member of your club covering their individual share of the tax liability. Each member receives their own Schedule K-1 which they must submit to the IRS with their personal tax returns.
- ICLUBcentral's Federal Club Tax Printer software includes all sections of Form 1065, and allows you to print out a Schedule K-1 for each member of your club.
What about the state taxes?
- Tax filing procedures differ from state to state. Some states do not require investment clubs to file returns, while others provide stiff penalties for investment clubs that do not file. Contact your state's tax agency (such as the Department of Revenue or Department of Taxation) for more information about your particular state's requirements. Note that tax laws do change, so even if a state did not require filings in the past, they may have changed their requirements for the 2015 tax year.
- All clubs that are located in Arizona, California, Colorado, Georgia, Indiana, Iowa, Maryland, Massachusetts, Minnesota, Missouri, New Jersey, New York, or Pennsylvania must file a return with their state agencies. Fortunately, clubs in these states can use ICLUBcentral's State Club Tax Printer software to generate the necessary forms.
- Clubs that are located in California, Massachusetts, or New Jersey should also be aware that they are subject to certain conditions.
- Please note that even if ICLUBcentral does not offer a State Club Tax Printer for your state, you may still need to file a state return, so check with your state tax agency for specific requirements.
- Finally, an increasing number of states require partnerships to file a return if the partnership has any partner who resides in that state, regardless of where the partnership is officially located. This may require some clubs to file with more than one state tax agency. To determine whether or not your club needs to file in adjacent states, please contact the appropriate state tax agency.
To learn more about filing your taxes, visit our Club Tax Printer Support page or the official IRS website.