Closing our club.

James HART III on

I would suggest you poll your members. It could be they would rather have the stock than potentially pay taxes as you sell all your stocks. Make sure you consider the tax ramifications of sell all your holdings.

Sent from my iPhone

On Apr 30, 2023, at 2:21 PM, SB via bivio.com <user*1595500001@bivio.com> wrote:

Thanks Ira
My recent experience was that the broker assigned the club's cost basis to the shares transferred to individual partners rather than using the partner cost basis that I provided. Only one of the several call center staff I spoke with at TDAm even asked why the cost basis of the partnership was different than that of the recipient individual.
Scott

On Sun, Apr 30, 2023 at 1:09 PM ira smilovitz via bivio.com <user*2883400001@bivio.com> wrote:
Scott Freeman wrote (in part):

Transferring stocks is more work for the treasurer and one
must interact with the broker to make sure the lots
transferred in the records at bivio are the same ones
transferred in the broker's records with the cost basis
assigned in the Withdrawal Report. When a withdrawal of
stock is entered in bivio the treasurer will have the
opportunity to identify which shares of stock where there
are multiple lots are to be transferred.

While this is more work for the treasurer, it really isn't important that the broker transfer the correct lots since the cost basis of the transferred shares will be reset based on the tax basis of the member receiving the shares and independent of the club's cost basis in the shares. The calculations behind the withdrawal report insure that the cost basis of the distributed shares is independent of which shares are transferred.

If you want to see this for yourself, you can play around with withdrawals in "My Demo Club" which can be found in the drop down list opened by clicking the yellow triangle next to your club ID in the upper right corner of the screen. Create a withdrawal for one of the members and fund it with shares from one of the multiple lot stocks. Print the withdrawal report. Delete the withdrawal and repeat, this time using a different lot of the same stock. (You must choose the same number of shares.) Print the new withdrawal report and compare the two reports.

Ira Smilovitz

Cynthia Gerke on

A little more info. I have been Treasurer of CRIG for 27
years. The Founding member required cash to be paid out and
a new member had to buy in. We now required a member to take
their percentage of each stock to reduce the tax burden to
all members and no longer charge withdrawer a fee. I
explained the stepped-up basis if a stock is held until
death vs selling upon receipt.
The bite we took in 2008 now equals 49% of portfolio and we
are all Senior citizens. Selling our stocks might make the
widows pay taxes on their SS income verses selling stocks
in multiple years. A tax preparer was scheduled to talk
today but is on vacation and will be at next meeting. One
member withdrawing is easy, CRIG originally had 40 members.
Disbanding and splitting different cost basis of purchased
lots might require distributing a stock with multiple lots
at different days. We plan to have all stock transferred by
Aug, sell any remaining shares, divide money by % and wait
until Dec for last Dividends then file closing taxes in
Feb.
Cindy Gerke
CRIG

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