Disbanning
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Disbanning No, the money cannot be put in a 401k if that is what the person is asking. The fairest thing to do is to sell stocks and pay cash to everyone. Otherwise tax implications will be unequal. You will still need to file a tax return for 2014 and issue k-1's so you may want to hold back $20 to cover cost of mailing k-1's and tax returns. Depending on your renewal date for Bivio you may need to pay for renewal to have the tax return prepared. Check with Bivio on that. Linda (tax preparer) Sent via the Samsung GALAXY S(R)4, an AT&T 4G LTE smartphone -------- Original message -------- From: Kittie Caldwell Date:08/27/2014 5:25 PM (GMT-05:00) To: The Club Cafe Subject: Re: [club_cafe] Disbanning Thank you so much for your replies on disbanding. I checked our agreement and it say decisions will be made by 2/3 vote. I now have 6 of 7 wanting to disband. I have been the treasurer for at least 6+ years and no one wants the job. I never could get anyone to shadow me and now I am moving to Georgia. The club was formed in 1995 and it has been a great club but the members are not that interested in continuing. My next question is: Can some members take stock for payment and some take cash or do we have to do it all the same? One member is considering stock. Another member asked if her money could be sent to her 401? I told her to ask her accountant. Cash seems the easiest to me. On Wed, Aug 27, 2014 at 9:13 AM, Laurie Frederiksen <laurie@bivio.biz> wrote:
I would suggest you tell each member to consult with their tax advisor and let them decide. Tim Hoyman Colorado Leprechauns From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of Linda No, the money cannot be put in a 401k if that is what the person is asking. The fairest thing to do is to sell stocks and pay cash to everyone. Otherwise tax implications will be unequal. You will still need to file a tax return for 2014 and issue k-1's so you may want to hold back $20 to cover cost of mailing k-1's and tax returns. Depending on your renewal date for Bivio you may need to pay for renewal to have the tax return prepared. Check with Bivio on that. Linda (tax preparer) Sent via the Samsung GALAXY S(R)4, an AT&T 4G LTE smartphone -------- Original message -------- From: Kittie Caldwell Date:08/27/2014 5:25 PM (GMT-05:00) To: The Club Cafe Subject: Re: [club_cafe] Disbanning Thank you so much for your replies on disbanding. I checked our agreement and it say decisions will be made by 2/3 vote. I now have 6 of 7 wanting to disband. I have been the treasurer for at least 6+ years and no one wants the job. I never could get anyone to shadow me and now I am moving to Georgia. The club was formed in 1995 and it has been a great club but the members are not that interested in continuing. My next question is: Can some members take stock for payment and some take cash or do we have to do it all the same? One member is considering stock. Another member asked if her money could be sent to her 401? I told her to ask her accountant. Cash seems the easiest to me. Thanks, Kittie Caldwell TWIG On Wed, Aug 27, 2014 at 9:13 AM, Laurie Frederiksen <laurie@bivio.biz> wrote: What rules has your club set up in your partnership agreement or operating procedures for making decisions? You'll need to follow those rules to determine whether a decision is binding on all members if 5 out of 7 people agree to it. Even if the decision is final for the current club, there is nothing wrong with the two people that want to continue participating in a club starting up a new one. Or, as Bob pointed out, if 5 people want to leave the club, you don't necessarily have to vote to disband it entirely. If you have more than 1 person working together at a business, it is a partnership. You could certainly continue an investment group with only 2 people in it if it worked for those two people. Laurie Frederiksen I disagree with Linda on disbanding club. She said..... << The fairest thing to do is to sell stocks and pay cash to everyone. Otherwise tax implications will be unequal.>> Tax consequences will always be unequal, depending on each member's basis in the club. If some members take stock, gains on their positions will be postponed until those stocks are sold, but none of the members taking cash will be affected. So, if some members would like to take stock, let them. It will not adversely affect any other member of the club. Rip West I am amazed at how many people suggest consulting with your 'tax adviser' as if anyone really has one any more. Since TurboTax was introduced, I have been able to handle sales of stocks and rental properties as well as depreciation and consulting expenses without needing a tax adviser. I believe that people who own a 401(k) need to know how they work and
whether it is to their advantage to, at some point, roll their holdings into an IRA. They can figure this out by reading articles in magazines or on the Internet. If you are wise enough to have saved for retirement, you need to also take responsibility for protecting your assets and that means spending some time learning about your options. Mike Jones Wall$treet Wannabees Bloomington, MN From: Tim Hoyman <tim@timhoyman.com> To: club_cafe@bivio.com Sent: Wednesday, August 27, 2014 6:36 PM Subject: RE: [club_cafe] Disbanning I would suggest you tell each member to consult with their tax advisor and let them decide. Tim Hoyman Colorado Leprechauns From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of Linda Sent: Wednesday, August 27, 2014 5:34 PM To: club_cafe@bivio.com Subject: Re: [club_cafe] Disbanning No,
the money cannot be put in a 401k if that is what the person is asking. The fairest thing to do is to sell stocks and pay cash to everyone. Otherwise tax implications will be unequal. You will still need to file a tax return for 2014 and issue k-1's so you may want to hold back $20 to cover cost of mailing k-1's and tax returns. Depending on your renewal date for Bivio you may need to pay for renewal to have the tax return prepared. Check with Bivio on that. Linda (tax preparer) Sent via the Samsung GALAXY S(R)4, an AT&T 4G LTE smartphone --------
Original message -------- From: Kittie Caldwell Date:08/27/2014 5:25 PM (GMT-05:00) To: The Club Cafe Subject: Re: [club_cafe] Disbanning Thank you so much for your replies on disbanding. I checked our agreement and it say decisions will be made by 2/3 vote. I now have 6 of 7 wanting to disband. I have been the treasurer for at least 6+ years and no one wants the job. I never could get anyone to shadow me and now I am moving to Georgia. The club was formed in 1995 and it has been a great club but the members are not that interested in continuing. My next question is: Can some members take stock for payment and some take cash or do we have to do it all the same? One member is considering stock. Another member asked if her money could be sent to her 401? I told her to ask her accountant. Cash seems the easiest to me. Thanks, Kittie Caldwell TWIG On Wed, Aug 27, 2014 at 9:13 AM, Laurie Frederiksen <laurie@bivio.biz> wrote: What rules has your club set up in your partnership agreement or operating procedures for making decisions? You'll need to follow those rules to determine whether a decision is binding on all members if 5 out of 7 people agree to it. Even if the decision is final for the current club, there is nothing wrong with the two people that want to continue participating in a club starting up a new one. Or, as Bob pointed out, if 5 people want to leave the club, you don't necessarily have to vote to disband it entirely. If you have more than 1 person working together at a business, it is a partnership. You could certainly continue an investment group with only 2 people in it if it worked for those two
people. 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 Unsubscribe I understand the point of view of the generality of my statement. However, in my profession (real estate) when issues do get complicated I always recommend tax and legal advice. I also have tax professionals and attorneys in my area who can and will answer those questions. After all, consulting with tax professionals is a lot easier than having an issue with the IRS. In the particular issue with an individual trying to offer advice for others on how to take money out, this can create problems down the road if there are surprises. If the answer is easy then that’s fine. However, I do not want to take on the added burden of giving legal/tax advice to others. After all, we are in a highly litigious society. Tim Hoyman Colorado Leprechauns From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of Mike Jones via bivio.com I am amazed at how many people suggest consulting with your 'tax adviser' as if anyone really has one any more. Since TurboTax was introduced, I have been able to handle sales of stocks and rental properties as well as depreciation and consulting expenses without needing a tax adviser. I believe that people who own a 401(k) need to know how they work and whether it is to their advantage to, at some point, roll their holdings into an IRA. They can figure this out by reading articles in magazines or on the Internet. If you are wise enough to have saved for retirement, you need to also take responsibility for protecting your assets and that means spending some time learning about your options.
Mike Jones Wall$treet Wannabees Bloomington, MN From: Tim Hoyman <tim@timhoyman.com> I would suggest you tell each member to consult with their tax advisor and let them decide.
Tim Hoyman Colorado Leprechauns
From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of Linda
No, the money cannot be put in a 401k if that is what the person is asking. The fairest thing to do is to sell stocks and pay cash to everyone. Otherwise tax implications will be unequal. You will still need to file a tax return for 2014 and issue k-1's so you may want to hold back $20 to cover cost of mailing k-1's and tax returns. Depending on your renewal date for Bivio you may need to pay for renewal to have the tax return prepared. Check with Bivio on that. Linda (tax preparer)
Sent via the Samsung GALAXY S®4, an AT&T 4G LTE smartphone
-------- Original message -------- From: Kittie Caldwell Date:08/27/2014 5:25 PM (GMT-05:00) To: The Club Cafe Subject: Re: [club_cafe] Disbanning
Thank you so much for your replies on disbanding. I checked our agreement and it say decisions will be made by 2/3 vote. I now have 6 of 7 wanting to disband. I have been the treasurer for at least 6+ years and no one wants the job. I never could get anyone to shadow me and now I am moving to Georgia. The club was formed in 1995 and it has been a great club but the members are not that interested in continuing. My next question is: Can some members take stock for payment and some take cash or do we have to do it all the same? One member is considering stock. Another member asked if her money could be sent to her 401? I told her to ask her accountant. Cash seems the easiest to me. Thanks, Kittie Caldwell TWIG
On Wed, Aug 27, 2014 at 9:13 AM, Laurie Frederiksen <laurie@bivio.biz> wrote: What rules has your club set up in your partnership agreement or operating procedures for making decisions? You'll need to follow those rules to determine whether a decision is binding on all members if 5 out of 7 people agree to it. Even if the decision is final for the current club, there is nothing wrong with the two people that want to continue participating in a club starting up a new one. Or, as Bob pointed out, if 5 people want to leave the club, you don't necessarily have to vote to disband it entirely. If you have more than 1 person working together at a business, it is a partnership. You could certainly continue an investment group with only 2 people in it if it worked for those two people. Laurie Frederiksen
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