Why doesn't the Distribution of Earnings or Allocation of Income and Expense report match my 1099?


The most likely cause of this is because there are undistributed earnings left over from one year or another. Often these are expense or income transactions are posted to the software on the same date as a distribution of earnings. Another common cause is one or more years having missing distributions.


The following steps can help you check your club records:


  1. Look at your Complete Journal report for the current tax year: Report date 12/31, start date 01/01.
  2. Check to see if the beginning balances or ending balances in three key fields -- DIV, MISC., GAIN -- are NOT zero. Also check to see if there is a distribution of earnings on 12/31. This will appear on the report right above the Ending Balances for the year.
  3. If Beginning Balances in these fields are zero, but ending balances are NOT zero, go to STEP 5.
  4. If Beginning Balances in these fields are NOT zero, repeat step 1 for the previous year, and keep repeating until you reach a year where the Beginning Balances ARE zero.
  5. Once you reach the most recent year for which Beginning Balances are zero, check the Complete Journal for any income/expense transactions that meet the criteria described above.
  6. If any such transactions are posted on 12/31, edit them to re-date them as 12/30, then save.
  7. If any such transactions are posted on the same date as a withdrawal, you have two options:
    • Move the withdrawal to the date after the income/expense transaction
    • Move the income/expense transaction to the date before the withdrawal.
  8. In the desktop version, Club Accounting 3 (CA3), select tools > Allocate Income and Expense. Or if you have the online version at www.myiclub.com, select Accounting > Utilities > Allocate Income and Expense.
    • Select the 12/31 date for the year you just completed. Club Accounting may alert that you have already distributed for this year and ask if you wish to continue; do so.
  9. When this is complete, move to the Complete Journal for the next year in line and repeat steps 5-9, for each year through the current tax year.
  10. Once you have completed this, you should have matching numbers on your Distribution of Earnings (or Allocation of Income and Expenses), your Complete Journal, your Income/Expense Summary-Balance Sheet, your Transaction Summary, and your Form 1065 forms (all).

NOTE: For any stocks that are not 'common', such as REITs, Mutual Funds, ETF's, or other groupings of individual securities into one entity, you will need to make some extra adjustments, before re-checking your year-end allocation:

* In myiclub.com:
Select Accounting > Securities > Update Security Settings.
Click the Edit link next to each security you need to change.
Select the type of security (Choose 'Other' if you're not sure)
Click the Submit button to save the changes.

* In CA3, select Securities, double-click on each security in turn, and select the appropriate Type OF SECURITY, then click OK.


With those steps complete, you can have the accounting system do the end of year allocation; for any stocks you have made changes on, the system will now ask you to enter the amount (if needed) of qualified dividends and section 1250 capital gains.