Withdrawals
There are costs associated with withdrawals that no one seems to be taking into account. A tax return needs to be printed and mailed, as well as K1's distributed. The withdrawing partner should share some of those expenses by paying a small withdrawal fee depending on the # of members. The expense can add up to $100 or more for a club. When a club disbands, there are some states that require a fee to end the partnership. If the treasurer paid everyone off at full value, who would end up paying these final expenses?
I would be interested to know how clubs handle the year of dissolution.
Linda
Sent via the Samsung GALAXY S(R)4, an AT&T 4G LTE smartphone
Hi Linda,
It is a good point that there may be some expense involved with tax preparation for the withdrawing member. It does seem though that $100 is a pretty large amount for that to cost. If it does, I can see why you'd want to include it in a withdrawal fee.
From our perspective, we often see clubs rush into finalizing withdrawals too quickly. You can't just look at your brokerage account value on some day and then divide it up the next.It is a good point that there may be some expense involved with tax preparation for the withdrawing member. It does seem though that $100 is a pretty large amount for that to cost. If it does, I can see why you'd want to include it in a withdrawal fee.
You need to make sure you have received any final income that is expected and have anticipated and paid any fees that you might need to pay. It's important to take these things into account prior to handing out withdrawal checks for a club disbanding.
Laurie Frederiksen
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On Tue, Jun 24, 2014 at 12:24 PM, wiltse <> wrote:
There are costs associated with withdrawals that no one seems to be taking into account. A tax return needs to be printed and mailed, as well as K1's distributed. The withdrawing partner should share some of those expenses by paying a small withdrawal fee depending on the # of members. The expense can add up to $100 or more for a club. When a club disbands, there are some states that require a fee to end the partnership. If the treasurer paid everyone off at full value, who would end up paying these final expenses?I would be interested to know how clubs handle the year of dissolution.LindaSent via the Samsung GALAXY S(R)4, an AT&T 4G LTE smartphone
Hi Linda,
I'm still not convinced. With bivio, it's very difficult for me to see how the cost of a withdrawal and the final k1 could add up to anything like $100. I have belonged to 3 clubs, and we have never paid the state any fee for disbanding. There is no tax reason to do so. There may be a legal reason, but I don't know what it is.
Rip west
I agree with Rip. There will be a small expense such as mailing the K1s/checks if they don't have access to Bivio. Transferring stocks has been free for us if the member has the same broker as the club. And even then the broker should charge the account holder not the club.
John Rice
On Tuesday, June 24, 2014 1:43 PM, Rip West <ripwest@comcast.net> wrote:
Hi Linda,
I'm still not convinced. With bivio, it's very difficult for me to see how the cost of a withdrawal and the final k1 could add up to anything like $100. I have belonged to 3 clubs, and we have never paid the state any fee for disbanding. There is no tax reason to do so. There may be a legal reason, but I don't know what it is.
Rip west
I am the treasurer for my club. We only take the fees charged by others.
I am uncertain where the high >$100 cost comes from.
For the federal and state return, packages included in membership. I pdf each members' k-1 and email to them. I register return receipt federal and state taxes total $22 or so. Paying for envelope as well.
I do the taxes and coordinate the audit.
With the exception of a few broker fees since we generally transfer stock... Not much.
I guess the asst treasurer and I could also add mileage. Which we have not done. We have charged for notary when we had to get something notarized.
I concur wholeheartedly having "% incentives" to dis incentivize folks from frequently departing, but >$100, don't see it.
Irina Clements
Treasurer Streetbeaters investment club
Be Well. Irina Sent from my iPad
There are costs associated with withdrawals that no one seems to be taking into account. A tax return needs to be printed and mailed, as well as K1's distributed. The withdrawing partner should share some of those expenses by paying a small withdrawal fee depending on the # of members. The expense can add up to $100 or more for a club. When a club disbands, there are some states that require a fee to end the partnership. If the treasurer paid everyone off at full value, who would end up paying these final expenses?I would be interested to know how clubs handle the year of dissolution.LindaSent via the Samsung GALAXY S(R)4, an AT&T 4G LTE smartphone
Our club has over 50 members. There is a cost of paper and ink to print out the several hundred pages for the tax returns plus K-1's. (600 pgs @ .05 = $30) You need the copy to mail and an extra copy for the club records. A PDF is fine if you keep a back-up and your hard drive doesn't decide to die. Mailing costs for our returns are about $50 for return receipt. I wish Bivio would handle e-filed returns. I wanted to prepare the tax return in my tax office to e-file, but with such a large membership and member values and units all different, I found the task too time-consuming.
I did not say to charge the withdrawing member $100. I said the cost of preparing (printing and mailing) the tax returns could be almost $100, depending on the size of the club. A withdrawal fee of $5 or $10 is fair.
Linda
From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of Laurie Frederiksen
Sent: Tuesday, June 24, 2014 1:00 PM
To: The Club Cafe
Subject: Re: [club_cafe] Withdrawals
Hi Linda,
It is a good point that there may be some expense involved with tax preparation for the withdrawing member. It does seem though that $100 is a pretty large amount for that to cost. If it does, I can see why you'd want to include it in a withdrawal fee.
From our perspective, we often see clubs rush into finalizing withdrawals too quickly. You can't just look at your brokerage account value on some day and then divide it up the next.
You need to make sure you have received any final income that is expected and have anticipated and paid any fees that you might need to pay. It's important to take these things into account prior to handing out withdrawal checks for a club disbanding.
Laurie Frederiksen
Invest with your friends!
www.bivio.com
Become our Facebook friend! www.facebook.com/bivio
Follow us on twitter! www.twitter.com/bivio
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On Tue, Jun 24, 2014 at 12:24 PM, wiltse <> wrote:
There are costs associated with withdrawals that no one seems to be taking into account. A tax return needs to be printed and mailed, as well as K1's distributed. The withdrawing partner should share some of those expenses by paying a small withdrawal fee depending on the # of members. The expense can add up to $100 or more for a club. When a club disbands, there are some states that require a fee to end the partnership. If the treasurer paid everyone off at full value, who would end up paying these final expenses?
I would be interested to know how clubs handle the year of dissolution.
Linda
Sent via the Samsung GALAXY S(R)4, an AT&T 4G LTE smartphone
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Wow! 50 members? Where is this club? We were in Denver area. . .& we had a difficult time agreeing on our basic buy/sell/hold philosophy with 20,15, 12, & finally even 7. . . Can't imagine the majority of 50 + people agreeing on anything -- with my limited Investment Club experience.
Just curious!
Your Club's net worth must be quite high. . .and bookkeeping must take forever. Where do you ALL meet? How many members usually attend each meeting? What is the monthly buy-in?
Carol in Colorado
Sent from my iPad
Sent from my iPad
Our club has over 50 members. There is a cost of paper and ink to print out the several hundred pages for the tax returns plus K-1's. (600 pgs @ .05 = $30) You need the copy to mail and an extra copy for the club records. A PDF is fine if you keep a back-up and your hard drive doesn't decide to die. Mailing costs for our returns are about $50 for return receipt. I wish Bivio would handle e-filed returns. I wanted to prepare the tax return in my tax office to e-file, but with such a large membership and member values and units all different, I found the task too time-consuming.
I did not say to charge the withdrawing member $100. I said the cost of preparing (printing and mailing) the tax returns could be almost $100, depending on the size of the club. A withdrawal fee of $5 or $10 is fair.
Linda
From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of Laurie Frederiksen
Sent: Tuesday, June 24, 2014 1:00 PM
To: The Club Cafe
Subject: Re: [club_cafe] WithdrawalsHi Linda,
It is a good point that there may be some expense involved with tax preparation for the withdrawing member. It does seem though that $100 is a pretty large amount for that to cost. If it does, I can see why you'd want to include it in a withdrawal fee.From our perspective, we often see clubs rush into finalizing withdrawals too quickly. You can't just look at your brokerage account value on some day and then divide it up the next.
You need to make sure you have received any final income that is expected and have anticipated and paid any fees that you might need to pay. It's important to take these things into account prior to handing out withdrawal checks for a club disbanding.
Laurie Frederiksen
Invest with your friends!
www.bivio.com
Become our Facebook friend! www.facebook.com/bivio
Follow us on twitter! www.twitter.com/bivio
Follow Us on Google+
Click here to Subscribe to the Club Cafe email list. Click here to UnsubscribeOn Tue, Jun 24, 2014 at 12:24 PM, wiltse <> wrote:
There are costs associated with withdrawals that no one seems to be taking into account. A tax return needs to be printed and mailed, as well as K1's distributed. The withdrawing partner should share some of those expenses by paying a small withdrawal fee depending on the # of members. The expense can add up to $100 or more for a club. When a club disbands, there are some states that require a fee to end the partnership. If the treasurer paid everyone off at full value, who would end up paying these final expenses?
I would be interested to know how clubs handle the year of dissolution.
Linda
Sent via the Samsung GALAXY S(R)4, an AT&T 4G LTE smartphone
This email is free from viruses and malware because avast! Antivirus protection is active.
& not only one group of 50+ members. -- but 2 such groups responded recently! Amazing! The groups must both be dynamic & inspiring & very successful. . . What's your secret? & Where are you located?
Carol
Wow! 50 members? Where is this club? We were in Denver area. . .& we had a difficult time agreeing on our basic buy/sell/hold philosophy with 20,15, 12, & finally even 7. . . Can't imagine the majority of 50 + people agreeing on anything -- with my limited Investment Club experience.Just curious!Your Club's net worth must be quite high. . .and bookkeeping must take forever. Where do you ALL meet? How many members usually attend each meeting? What is the monthly buy-in?Carol in Colorado
Sent from my iPadOur club has over 50 members. There is a cost of paper and ink to print out the several hundred pages for the tax returns plus K-1's. (600 pgs @ .05 = $30) You need the copy to mail and an extra copy for the club records. A PDF is fine if you keep a back-up and your hard drive doesn't decide to die. Mailing costs for our returns are about $50 for return receipt. I wish Bivio would handle e-filed returns. I wanted to prepare the tax return in my tax office to e-file, but with such a large membership and member values and units all different, I found the task too time-consuming.
I did not say to charge the withdrawing member $100. I said the cost of preparing (printing and mailing) the tax returns could be almost $100, depending on the size of the club. A withdrawal fee of $5 or $10 is fair.
Linda
From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of Laurie Frederiksen
Sent: Tuesday, June 24, 2014 1:00 PM
To: The Club Cafe
Subject: Re: [club_cafe] WithdrawalsHi Linda,
It is a good point that there may be some expense involved with tax preparation for the withdrawing member. It does seem though that $100 is a pretty large amount for that to cost. If it does, I can see why you'd want to include it in a withdrawal fee.From our perspective, we often see clubs rush into finalizing withdrawals too quickly. You can't just look at your brokerage account value on some day and then divide it up the next.
You need to make sure you have received any final income that is expected and have anticipated and paid any fees that you might need to pay. It's important to take these things into account prior to handing out withdrawal checks for a club disbanding.
Laurie Frederiksen
Invest with your friends!
www.bivio.com
Become our Facebook friend! www.facebook.com/bivio
Follow us on twitter! www.twitter.com/bivio
Follow Us on Google+
Click here to Subscribe to the Club Cafe email list. Click here to UnsubscribeOn Tue, Jun 24, 2014 at 12:24 PM, wiltse <> wrote:
There are costs associated with withdrawals that no one seems to be taking into account. A tax return needs to be printed and mailed, as well as K1's distributed. The withdrawing partner should share some of those expenses by paying a small withdrawal fee depending on the # of members. The expense can add up to $100 or more for a club. When a club disbands, there are some states that require a fee to end the partnership. If the treasurer paid everyone off at full value, who would end up paying these final expenses?
I would be interested to know how clubs handle the year of dissolution.
Linda
Sent via the Samsung GALAXY S(R)4, an AT&T 4G LTE smartphone
This email is free from viruses and malware because avast! Antivirus protection is active.
I use the part of Bivio where everyone can print their own forms. Costs me nothing. If a member has withdrawn simply " check show all members". It is each person's responsibility to make sure they have all of the forms necessary to file their taxes. I print one copy to send to the IRS and one for our permanent records. The club graciously provides me with paper and ink for the forms I do print.
Connie Humble
Women Investing Now, South Dakota
From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of wiltse
Sent: Tuesday, June 24, 2014 10:25 AM
To: club_cafe@bivio.com
Subject: [club_cafe] Withdrawals
There are costs associated with withdrawals that no one seems to be taking into account. A tax return needs to be printed and mailed, as well as K1's distributed. The withdrawing partner should share some of those expenses by paying a small withdrawal fee depending on the # of members. The expense can add up to $100 or more for a club. When a club disbands, there are some states that require a fee to end the partnership. If the treasurer paid everyone off at full value, who would end up paying these final expenses?
I would be interested to know how clubs handle the year of dissolution.
Linda
Sent via the Samsung GALAXY S(R)4, an AT&T 4G LTE smartphone
Yeah, I'm sorry, I'm going to have to chime in here. I just don't see the cost of a withdrawal as being that much. I mean, really, even if you use an entire ream of paper we are only talking a few dollars. We don't charge our withdrawing members anything as the cost of an email and a few sheets of paper is minimal.
Andy
On Jun 25, 2014 7:27 PM, "Connie Humble" <chumble@sdplains.com> wrote:
I use the part of Bivio where everyone can print their own forms. Costs me nothing. If a member has withdrawn simply " check show all members". It is each person's responsibility to make sure they have all of the forms necessary to file their taxes. I print one copy to send to the IRS and one for our permanent records. The club graciously provides me with paper and ink for the forms I do print.
Connie Humble
Women Investing Now, South Dakota
From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of wiltse
Sent: Tuesday, June 24, 2014 10:25 AM
To: club_cafe@bivio.com
Subject: [club_cafe] Withdrawals
There are costs associated with withdrawals that no one seems to be taking into account. A tax return needs to be printed and mailed, as well as K1's distributed. The withdrawing partner should share some of those expenses by paying a small withdrawal fee depending on the # of members. The expense can add up to $100 or more for a club. When a club disbands, there are some states that require a fee to end the partnership. If the treasurer paid everyone off at full value, who would end up paying these final expenses?
I would be interested to know how clubs handle the year of dissolution.
Linda
Sent via the Samsung GALAXY S(R)4, an AT&T 4G LTE smartphone
I agree. The incremental cost of one tax form just isn't worth it. We have also eliminated most of our withdrawal fees over the last several years (no fee if you have been in the club for 5 years or for hardship, ability to remove 1/2 of total without fee if less than 5 years). For ANY withdrawals, the cost of the removal (brokerage fees, postage, etc.) is deducted for the final cash-out.
Jimmy Dickerson
Yeah, I'm sorry, I'm going to have to chime in here. I just don't see the cost of a withdrawal as being that much. I mean, really, even if you use an entire ream of paper we are only talking a few dollars. We don't charge our withdrawing members anything as the cost of an email and a few sheets of paper is minimal.
Andy
On Jun 25, 2014 7:27 PM, "Connie Humble" <chumble@sdplains.com> wrote:I use the part of Bivio where everyone can print their own forms. Costs me nothing. If a member has withdrawn simply " check show all members". It is each person's responsibility to make sure they have all of the forms necessary to file their taxes. I print one copy to send to the IRS and one for our permanent records. The club graciously provides me with paper and ink for the forms I do print.
Connie Humble
Women Investing Now, South Dakota
From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of wiltse
Sent: Tuesday, June 24, 2014 10:25 AM
To: club_cafe@bivio.com
Subject: [club_cafe] Withdrawals
There are costs associated with withdrawals that no one seems to be taking into account. A tax return needs to be printed and mailed, as well as K1's distributed. The withdrawing partner should share some of those expenses by paying a small withdrawal fee depending on the # of members. The expense can add up to $100 or more for a club. When a club disbands, there are some states that require a fee to end the partnership. If the treasurer paid everyone off at full value, who would end up paying these final expenses?
I would be interested to know how clubs handle the year of dissolution.
Linda
Sent via the Samsung GALAXY S(R)4, an AT&T 4G LTE smartphone