The taxable gain (or loss) associated with a withdrawal from a club is measured from the date the member joined the club. You do not track the date of each contribution to the club separately.

 

Ira Smilovitz

 

Ira (or anyone):

Can you clairfy your response.  Say a member joined 5 years
ago, and has been adding every quarter.  When they withdraw,
is the distribution (cash minus adjusted cost basis)
entirely a long-term gain based on the date they joined?  Or
is it a combination of long-term (for contributions made up
to one year before withdrawal) and short term capital gains?

Thanks in advance.

Paul