FAQs: Investment Fund

1. My investment fund is not an excepted investment fund, but all of its underlying assets are below the dollar thresholds for reporting (i.e., $1,000 in value or $200 in income). How should I report this investment fund?

Block A: Provide the name of the fund and identify it as an investment fund (e.g., “investment fund,” “hedge fund,” “stable value fund,” “venture capital fund,” etc.).

Below the description of the investment fund in Block A, write “underlying assets below reporting thresholds.”

Block B: Mark the column that corresponds to the total value of your interest in the investment fund.

EIF: Just to the right of Block B is a column identified as “Excepted Investment Fund” (EIF). Do not mark the “Excepted Investment Fund” column.

Block C: Report the income in the “Type” and “Amount” columns of Block C or the “Other Income” column as appropriate. See Question #2 for more information on reporting income.

2. Do I provide the exact amount of income or do I mark an income column in Block C?

In Block C of Schedule A, you generally need to report all income produced during the reporting period. But what you need to enter in Block C depends on several factors:

• Income Less than $201: If the asset produced less than $201 in income, you may mark the column labeled “None (or less than $201).” You do not need to specify the type of income.

• Excepted Investment Fund: If the asset qualifies as an excepted investment fund, mark the “Amount” column that corresponds to the amount of income produced by the asset during the reporting period. You do not need to specify the type of income.

• Dividends, Rent and Royalties, Interest, or Capital Gains: If the income from the asset can be classified as dividends, rent and royalties, interest, or capital gains, mark all applicable “Type” columns, unless the asset is an excepted investment fund. Also, mark an “Amount” column corresponding to the total amount of income you received during the reporting period.

• All Other Cases: If the income from the asset cannot be classified as dividends, rent and royalties, interest, or capital gains, describe the type of income in the column labeled “Other Income” on the right side of the page (e.g., “partnership share” or “distribution”). Also, in the “Other Income” column, provide the exact amount of income produced during the reporting period, instead of marking a column to indicate only the category of amount of income.

 

This guide is not intended to provide investment advice, and you should not rely on statements in this guide when making investment decisions.

Note: To return to the previous page, close this browser window.