Tax implications
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Tax implications I am wanting to transfer stocks from our investment Club to my personal TDA account rather than to take a cash withdrawal.. looking at the Member Status Report, will this defer paying tax on the Tax Basis by transferring rather than taking a cash withdrawal? This withdrawal is all profit since I have invested a little less than I have in Market Value...Am I thinking right? We reorganized and I am trying to level the playing field with the new members. Dear Beth, If you are not leaving for good, this withdrawal will be a partial withdrawal. The determination of basis of shares received in a partial withdrawal can be complex. As opposed to a full withdrawal, in general if appreciated shares are used to fund a partial withdrawal, you receive them at the clubs tax basis. If the total basis of the shares you receive plus any cash you receive does not exceed your tax basis in the club, you will not owe any taxes until the shares are sold. But when you do sell them, you may end up owing more tax sooner than you would if you had received your partial withdrawal payment in cash. Because the tax consequences can be complicated and unexpected when funding a partial withdrawal with stock rather than cash, the usual recommendation is not to do it. 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 On Sun, Sep 21, 2014 at 2:55 PM, Beth A Theiss <fbtheiss@gmail.com> wrote: I am wanting to transfer stocks from our investment Club to |
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