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Cricket Investors Group is recognized by the Internal Revenue Service as a partnership. By IRS definition, partners are individually responsible for paying taxes on income earned by the partnership. By agreement, Cricket partners are responsible for tax liabilities based on the percent of Club ownership.
COMPLETING YOUR TAX RETURN (YEAR-END)
Cricket will furnish the pertinent tax information to each partner. This information is presented in two forms. Partners will receive a year-end Partner Summary Statement in January. Partners will then receive a Schedule K-1 (Partner's Share of Income, Credits, Deductions, etc) in April.
Both documents are for your records. They will enable you to complete your taxes before the April 15th deadline. You are NOT required to submit either statement with your tax return. Cricket will furnish this information to the IRS on your behalf.
To complete your tax return, you must transfer the tax information from either statement to your individual tax return and related schedules. Use the following table to determine where to record your income information.
| Items To Claim | K-1 Line | Where To Show on your 1040 |
| Interest | 4a | Schedule B, Part I, line 1 |
| Ordinary Dividends | 4b | Schedule B, Part II, line 5 |
| Net short-term capital gains (loss) | 4d | Schedule D, line 5, column (f) |
| Net long-term capital gain (loss) | 4e(1) | Schedule D, line 12, column (f) |
| Foreign Income Earned | 17c | Form 1116, Part I |
| Foreign Tax Paid | 17e | Form 1116, Part II |
For additional tax information, please consult your tax advisor or the Internal Revenue Service. For additional copies of statements, please write the Club Treasurer at [email protected].
CALCULATING YOUR TAX LIABILITY (ALL YEAR)
To prevent surprises in April, you may want to calculate your tax liability during the year. You can calculate your tax liability using information on this website or from your Partner Summary Statement.
Financial Statements are posted on this website each month. Financials are also mailed quarterly (January, April, July, October) with your Partner Summary Statement.
To estimate reportable income and tax liability, use these simple formulas.
Estimate Reportable Income
YTD Net Income from most recent month times your Percent of Club Ownership |
The product is a year-to-date estimate of income (or loss) that will be reported to the IRS on your behalf.
Calculate Tax Liability
Estimated Income (or Loss) times your Tax Rate (typically referred to as tax bracket) |
The product is an estimate of your tax liability. The result may add to your tax payment or reduce your tax refund in April.
Example
Cricket has a YTD Net Income of $10,000. You own 6% of the Club. You are in the 28% tax bracket.
| Estimated Reportable Income: $10,000 x 6% = $600 |
| Estimated Tax Liability: $600 x 28% = $168 |
Remember, this is an estimate. Nothing is official until December 31st. However, you may want to do this exercise periodically throughout the year to avoid surprises in April.
You can reduce your tax payment or increase your tax refund by having additional taxes withheld by your employer. If you don't want to mess with your paycheck, you can set aside money in a savings account in anticipation of writing a big check on April 15th.
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