Can be Tricky A couple of friends and I are interested in starting an investment club. Investment clubs are usually organized as partnerships, which means profits and losses pass straight to the partners, and the club doesn't pay taxes. But that doesn't mean the club is completely off the hook. See Form 1065 instructions for more information.
Members then report the information on their individual tax forms.
If you're in charge of the club's books, you won't be able to complete the tax forms until you get the club's year-end brokerage statement, probably in mid to late January. Because record keeping for investment clubs can get tricky, it's a good idea to join the National Association of Investors Corp. , an association of more than 37,000 investment clubs throughout the country. The NAIC offers two software packages to help with club finances. You'll also find help at bivio , which includes many online resources for investment clubs. The Kiplinger Washington Editors, Inc.