Report each amount on the appropriate lines and schedules of your income tax return. See chapter 3 for more information. For more information about reporting your income from a partnership, see the Schedule K-1 instructions. For more information about the tax treatment of partnership items and a partner's tax return, see Publication 541, Partnerships. Passive activity losses.
Rules apply that limit losses from passive activities.
If you have a passive activity loss from a partnership, you must complete Form 8582, Passive Activity Loss Limitations, to figure the amount of the allowable loss to enter on your tax return. No social security coverage for investment club earnings . If an investment club partnership's activities are limited to investing in savings certificates, stock, or securities, and collecting interest or dividends for its members' accounts, a member's share of income is not earnings from self employment. You cannot voluntarily pay the self employment tax to increase your social security coverage and ultimate benefits. For more information on self employment tax, see Publication 533, Self Employment Tax.