Reconciling timing of partner's full cash withdrawal across tax years
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Reconciling timing of partner's full cash withdrawal across tax years We gave a partner a full withdrawal check in Dec 2011 but she did not cash it until Jan 2012. Hence, Bivio shows the cash level is lower than our brokerage statement. How do we reconcile this for our 2011 tax filing? Or, does this not affect our filing? Thank you. "We gave a partner a full withdrawal check in Dec 2011 but she did not cash it until Jan 2012. Hence, Bivio shows the cash level is lower than our brokerage statement. How do we reconcile this for our 2011 tax filing? Or, does this not affect our filing?" Dear Robin, For purposes of your accounting and your taxes, your member is withdrawn when she receives the check, not when she cashes it. As long as you know the reason for the cash discrepancy at the end of the year, you are OK. If you are not comfortable with this, you can enter a withdrawal using a temporary suspense account. Record the withdrawal as being paid from this account and then, when the member cashes the check, enter it as a transfer from broker to suspense to zero it out. You can find more details about how to do this in this presentation: https://www.bivio.com/site-help/bp/Withdrawals.pdf Thank you for using bivio! Laurie Frederiksen Become our Facebook Friend! www.facebook.com/bivio Laurie, Help! I went to the cafe the other day to read about tax preparation. Since then I am receiving all of the e-mails that you get and all of the responses. It is like a virus. How do I stop this? I do not want 20or so e-mails a day. anne From: Laurie Frederiksen <laurie@bivio.biz> To: club_cafe@bivio.com Sent: Monday, February 27, 2012 8:46 PM Subject: [club_cafe] Re: Reconciling timing of partner's full cash withdrawal across tax years "We gave a partner a full withdrawal check in Dec 2011 but she did not cash it until Jan 2012. Hence, Bivio shows the cash level is lower than our brokerage statement. How do we reconcile this for our 2011 tax filing? Or, does this not affect our filing?" Dear Robin, For purposes of your accounting and your taxes, your member is withdrawn when she receives the check, not when she cashes it. As long as you know the reason for the cash discrepancy at the end of the year, you are OK. If you are not comfortable with this, you can enter a withdrawal using a temporary suspense account. Record the withdrawal as being paid from this account and then, when the member cashes the check, enter it as a transfer from broker to suspense to zero it out. You can find more details about how to do this in this presentation: https://www.bivio.com/site-help/bp/Withdrawals.pdf Thank you for using bivio! Laurie Frederiksen Become our Facebook Friend! www.facebook.com/bivio |
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