Transfer stock into club fund
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Transfer stock into club fund Hi, I am with a group of 60 friends that all currently hold positions in different stocks and would like to continue to hold these positions and not sell. Can we transfer these stocks into the club fund, or would we need to sell all positions and start from scratch? Thanks, Zen, why do you want to transfer stocks into an investment club? I would definitely talk to a tax professional. Since you are transferring ownership then anything over a certain limit will be taxed (gift tax). Are any of the stocks in a tax deferred account? John Rice ABODI Investment club From: Zak Klein <zaklein10@gmail.com> To: club_cafe@bivio.com Sent: Wednesday, November 6, 2013 8:58 PM Subject: [club_cafe] Transfer stock into club fund Hi, I am with a group of 60 friends that all currently hold positions in different stocks and would like to continue to hold these positions and not sell. Can we transfer these stocks into the club fund, or would we need to sell all positions and start from scratch? Thanks, << Zen, why do you want to transfer stocks into an investment club? I would definitely talk to a tax professional. Since you are transferring ownership then anything over a certain limit will be taxed (gift tax). >> This, simply, is not true. There would be no gift tax involved. The transfer would be treated as a tax-free transfer between an individual and a partnership of which the individual is a member. Unfortunately, as stated in a previous message, no software of which I am aware has the capability of performing the complicated bookkeeping that would accompany such a transaction. Rip West Saint Paul, MN Zak, You do not want to transfer ownership of stocks into a club. The rules for determining the cost basis/holding period/ and eventual gain/loss (and who is responsible for what) are very complex and beyond the scope of any of the investment club accounting software programs.
If you start a club, the members should only contribute cash. The club can invest in any (or all) of the securities currently owned by the members. Ira Smilovitz On Wed, Nov 6, 2013 at 11:58 PM, Zak Klein <zaklein10@gmail.com> wrote: Hi, I am with a group of 60 friends that all currently hold positions in different stocks and would like to continue to hold these positions and not sell. Can we transfer these stocks into the club fund, or would we need to sell all positions and start from scratch? |
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