Partnership Investment Clubs

An investment club is formed when a group of friends, neighbors, business associates or others pool their money to invest in stock or other securities. Most investment clubs are treated as partnerships for federal and Minnesota taxes.

If you are filing a Partnership Tax return for an investment club:

• Enter zeros on all the lines of Form M3A, page 3 of Form M3, Partnership Return.
• Sign and date at the bottom of the return
• When you file the return, include a full copy of the federal Form 1065, including Schedules K-1

For more information about investment clubs and tax treatment, see IRS Publication 550, Investment Income and Expenses.