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Does an investment club need to file a tax return?

The income of the investment club is allocated to its members and each member must include his or her potion of investment income in your own personal income. This may make your income tax form difficult to complete and you may want to seek the assistance of qualified accountant, which can be quite costly.

There are three types of tax that apply to your investment club income: The treasurer of the investment club will allocate the capital gains, interest income and dividends earned annually at year-end to the members and then it is the responsibility of the members to report on their individual tax forms.