| If you are a member of an investment club or are | | | | although every club should inform the relevant |
| considering joining an investment club then there are | | | | authorities of its existence. This is usually the |
| many financial aspects to consider. Not only do you | | | | treasurer's job but any member can do it. It is literally |
| have to concern yourself with how you are going to | | | | just a matter of filling in a form to confirm that the |
| make money and what products and shares you | | | | club exists and also the address so any relevant |
| should invest in but you also have to consider | | | | correspondence can be sent through as and when |
| investment club taxes. That's right; you have to pay | | | | needed. However, the responsibility for paying |
| taxes on anything you make from your involvement. | | | | investment club taxes on any money made is down |
| After all, the income you receive from such a | | | | to the individual at the end of the tax year. |
| venture is still classed as earnings, but what | | | | Every member of a club should be given an earnings |
| investment club taxes do you have to pay and are | | | | summary sheet by the treasurer of the club at the |
| they any different to regular taxes? | | | | end of the tax year to confirm how much money |
| Rules governing investment club taxes vary from | | | | has been paid to them. This is an official document |
| country to country. For example, the tax laws that | | | | that can then be used as proof of earnings when all |
| apply in the United States will be very different to | | | | individual investment club taxes are declared by filling |
| those that apply to the UK. As such, the first thing | | | | in the relevant forms. In the United States this is |
| that you should do is familiarize yourself with the tax | | | | Form 1065 and Schedule K-1s and in the UK it is form |
| laws that apply in your country of residence. That is | | | | 185, but obviously the process will vary from country |
| not to say that you cannot join an investing club in a | | | | to country. |
| foreign country, because you can. If you live in | | | | No matter where you live, information on investment |
| France, for example, then you can still join one that is | | | | club taxes and the relevant paperwork can be |
| based in the United States. However, you should be | | | | requested from the relevant authorities. If in doubt |
| aware that any investment club taxes that you have | | | | just ask because any violation of tax laws could |
| to pay would be applicable in your home country, | | | | leave you in trouble rather than enjoying your |
| regardless of where the club itself is based. | | | | investment dividends! |
| The club itself does not pay investment club taxes, | | | | |