Tax Time |
As tax time rolls around, we have to deal with reporting income and losses to the IRS. The Loot Lizards produce a distribution of earnings statement at the time of the audit.(How and why?) This statement is then handed out at the next meeting. (This year, we had to wait for the new software so it took a little longer.)
From the distribution of earnings statement, the Treasurer then fills out the club's 1065 form, along with 1065K-1's for each member who put money in during the year, signs it and mails them all off to the IRS. (Copies of the 1065 k-1s are handed out at the next meeting.)
Loot Lizards who do their taxes early can work from the distribution
of earnings statement to do their taxes if they don't want to wait for
the official 1065 k-1 copy at the next meeting. (When reporting values,
make sure you pick up the line containing your own, not the club total's.)
| Distribution of Earnings Column | Form 1065 K-1 | Form 1040 |
| DIVIDENDS | line 4b | Sch B, Part II, Line 5 |
| TAXABLE INTEREST | line 4a | Sch B Part I, line 1 |
| SHORT TERM CAPITAL GAINS | line 4d | Sch D, line 5 col f |
| LONG TERM CAPITAL GAINS | line 4e2 | Sch D, line 12, col f |
| MISC INCOME/EXPENSE | line 10 | Sch A, line 15 or 16 |
(MISC INCOME/EXPENSE is brokerage fees for complicated splits/spinoffs.)
The IRS has a site full of printable forms and instructions for your tax time fun.
When you file your return, you don't need to send in the 1065 k-1, but
you should retain the distribution of earnings and 1065 k-1 for your tax
records. (It's something the IRS sees enough of that they probably won't
count the Loot Lizards income twice, but why take chances?)