Transferring club assets within the club

JDunham on

How do I transfer assets from one club member to another? I understand that at the end of the year there will be tax implications because the percentage of ownership will change for the parties involved. Will the transaction itself be a taxable event also?

Thanks.

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John W Ranby on

I interpret your situation to be that one member wants to
own less units in the partnership and another member wants
to own more.

The way to accomplish this result is to conduct a full or
partial withdrawal for the member who wants to own less and
have the member who wants to own more to pay money to the
partnership.

Treat them as two separate transactions. Only the member
reducing the size of his/her share of the partnership will
have tax consequences.

Jack Ranby
Treasurer, Grants Partners Investment Club

ira smilovitz on

It depends on whether the transfer will be a gift or whether one member is "purchasing" units from the other. If the latter, then Jack Ranby's answer is correct. If the transfer is a gift, then you need to contact bivio support in order to make the correct entries in your club's records.

Ira Smilovitz

On Wed, Jan 14, 2015 at 2:26 PM, John W Ranby <ranby@azbar.org> wrote:

I interpret your situation to be that one member wants to
own less units in the partnership and another member wants
to own more.

The way to accomplish this result is to conduct a full or
partial withdrawal for the member who wants to own less and
have the member who wants to own more to pay money to the
partnership.

Treat them as two separate transactions. Only the member
reducing the size of his/her share of the partnership will
have tax consequences.

Jack Ranby
Treasurer, Grants Partners Investment Club

Jack Dunham on

The intent is to gift the assets to another member. There's no intention to exchange any money as part of this transaction. I will contact bivio support to see how to do this.

Thanks for you help.

Mike Jones on

Because there is a tax impact when giving appreciated stocks (including an annual limit on the gift before gift tax is due), wouldn't a correct transfer require a full or partial withdrawal by one member, presentation of cash (via check) to the second member, and then a payment of all or part of the cash by that second member?.

Mike Jones

Wall$treet Wannabees

From: Jack Dunham via bivio.com <user*34260000001@bivio.com>
To: club_cafe@bivio.com
Sent: Thursday, January 15, 2015 9:11 AM
Subject: [club_cafe] Re: Transferring club assets within the club

The intent is to gift the assets to another member. There's no intention to exchange any money as part of this transaction. I will contact bivio support to see how to do this.

Thanks for you help.

Laurie Frederiksen on

Dear Mike,

If you gift stocks that have gone up in value there is no tax impact for the receiver until they sell the stocks.

The giftor may need to file a gift tax return if the gift exceeds certain thresholds which change each year.

Laurie Frederiksen
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On Thu, Jan 15, 2015 at 12:27 PM, Mike Jones via bivio.com <user*21595500001@bivio.com> wrote:

Because there is a tax impact when giving appreciated stocks (including an annual limit on the gift before gift tax is due), wouldn't a correct transfer require a full or partial withdrawal by one member, presentation of cash (via check) to the second member, and then a payment of all or part of the cash by that second member?.

Mike Jones
Wall$treet Wannabees

From: Jack Dunham via bivio.com <user*34260000001@bivio.com>
To: club_cafe@bivio.com
Sent: Thursday, January 15, 2015 9:11 AM
Subject: [club_cafe] Re: Transferring club assets within the club

The intent is to gift the assets to another member. There's no intention to exchange any money as part of this transaction. I will contact bivio support to see how to do this.

Thanks for you help.

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