Making sure I have my dates correctly for a full withdrawal from the club

Kevin Gillogly on

Fellow Treasurers,

While I consider myself fairly proficient in club accounting
matters, I am ready to make my withdrawal. I have reviewed
the webinars on withdrawals. So I know I will be
transferring appreciated stocks to the withdrawing partner.
I have the correct form from TD Ameritrade to execute the
transfer of stocks and I am clear on the transfer of funds.
I had the audit committee do another quick audit on the
books and we are set there.

So here are my questions. Our club has its valuation date on
Friday February 12th for our club meeting on Wed Feb 17th
per our Operating Procedure. Bivio recommends that we use
the member withdrawal date of two days prior to the business
meeting (or Monday Feb 15th). Wall Street is closed on Mon
Feb 15th for President's Day so the valuation will be the
same as Friday Feb 12th.

I was asked by the withdrawing partner what would be her
final valuation. I am not 100% sure. But my guess is Mon Feb
15th. Also she asked what date would her cost basis be in
the transferred stocks. I am at a loss over that one. Also I
was asked if it takes a week or so to transfer the stocks to
her Schwab account, and then she sells the two stocks ASAP
what is her valuation on the stocks she received.

Thanks in advance.

Kevin Gillogly

Bob Mann on

It doesn't matter what Bivio says, what do your by-laws say? if the valuation date is Friday then it's Friday. Her final valuation will be what is reported using Friday's value. How she gets it as a combination of shares and cash is up to the club. Her cost basis will be detailed in the withdrawal report, and her basis won't change between when she gets it and sells it. I think she's looking to determine whether selling immediately will incur short-term or long-term capital gains. That one I can't answer. The value will change and that can only be determined by her, when she sells.

Bob Mann
> On 02/14/2021 2:53 PM Kevin Gillogly via bivio.com <user*9886100001@bivio.com> wrote:
>
>
> Fellow Treasurers,
>
> While I consider myself fairly proficient in club accounting
> matters, I am ready to make my withdrawal. I have reviewed
> the webinars on withdrawals. So I know I will be
> transferring appreciated stocks to the withdrawing partner.
> I have the correct form from TD Ameritrade to execute the
> transfer of stocks and I am clear on the transfer of funds.
> I had the audit committee do another quick audit on the
> books and we are set there.
>
> So here are my questions. Our club has its valuation date on
> Friday February 12th for our club meeting on Wed Feb 17th
> per our Operating Procedure. Bivio recommends that we use
> the member withdrawal date of two days prior to the business
> meeting (or Monday Feb 15th). Wall Street is closed on Mon
> Feb 15th for President's Day so the valuation will be the
> same as Friday Feb 12th.
>
> I was asked by the withdrawing partner what would be her
> final valuation. I am not 100% sure. But my guess is Mon Feb
> 15th. Also she asked what date would her cost basis be in
> the transferred stocks. I am at a loss over that one. Also I
> was asked if it takes a week or so to transfer the stocks to
> her Schwab account, and then she sells the two stocks ASAP
> what is her valuation on the stocks she received.
>
> Thanks in advance.
>
> Kevin Gillogly

Robert Shaw on

I think as far as the club is concerned the club value is the value on the valuation date specified in the PA.

As far as the IRS is concerned I expect the value will be the value on the date she takes personal possession of the stocks.

Her basis is what it is and will not change when she takes possession.

I am not a tax expert and do not rely on these words.

Bob

> On Feb 14, 2021, at 2:53 PM, Kevin Gillogly via bivio.com <user*9886100001@bivio.com> wrote:
>
> Fellow Treasurers,
>
> While I consider myself fairly proficient in club accounting
> matters, I am ready to make my withdrawal. I have reviewed
> the webinars on withdrawals. So I know I will be
> transferring appreciated stocks to the withdrawing partner.
> I have the correct form from TD Ameritrade to execute the
> transfer of stocks and I am clear on the transfer of funds.
> I had the audit committee do another quick audit on the
> books and we are set there.
>
> So here are my questions. Our club has its valuation date on
> Friday February 12th for our club meeting on Wed Feb 17th
> per our Operating Procedure. Bivio recommends that we use
> the member withdrawal date of two days prior to the business
> meeting (or Monday Feb 15th). Wall Street is closed on Mon
> Feb 15th for President's Day so the valuation will be the
> same as Friday Feb 12th.
>
> I was asked by the withdrawing partner what would be her
> final valuation. I am not 100% sure. But my guess is Mon Feb
> 15th. Also she asked what date would her cost basis be in
> the transferred stocks. I am at a loss over that one. Also I
> was asked if it takes a week or so to transfer the stocks to
> her Schwab account, and then she sells the two stocks ASAP
> what is her valuation on the stocks she received.
>
> Thanks in advance.
>
> Kevin Gillogly

William Waskosky on

I am the treasurer of ClubNet in Minnesota and did a withdrawal of two members on January 29 with stock and cash transfer from TDA to members' TDA account. I sent in the TD Ameritrade forms after our Meeting on February 2 by FAX. I thought the transfer for the stock and cash would happen in just a few days after they received the fax. That did not happen. After a week I sent an email through the TDA client service and they just got back to me on Feb. 11 that the transfer would take 5 to 7 more days. It sounds like TDA client services are behind on doing these transfers. In Minnesota, all branch offices are closed because of Covid 19 so you can't meet with someone in person. I would just keep the leaving member informed that this process will take time and it is out of your control. Give them the dates that you do things and any emails from TDA provides you to keep them informed. Our leaving members thought this transaction would happen in just two days once you send in the transfer form. Once form is sent the Treasurer in no longer in control of when transfer happens.

Bill W

Club Net Treasurer

On Sun, Feb 14, 2021 at 1:54 PM Kevin Gillogly via bivio.com <user*9886100001@bivio.com> wrote:

Fellow Treasurers,

While I consider myself fairly proficient in club accounting
matters, I am ready to make my withdrawal. I have reviewed
the webinars on withdrawals. So I know I will be
transferring appreciated stocks to the withdrawing partner.
I have the correct form from TD Ameritrade to execute the
transfer of stocks and I am clear on the transfer of funds.
I had the audit committee do another quick audit on the
books and we are set there.

So here are my questions. Our club has its valuation date on
Friday February 12th for our club meeting on Wed Feb 17th
per our Operating Procedure. Bivio recommends that we use
the member withdrawal date of two days prior to the business
meeting (or Monday Feb 15th). Wall Street is closed on Mon
Feb 15th for President's Day so the valuation will be the
same as Friday Feb 12th.

I was asked by the withdrawing partner what would be her
final valuation. I am not 100% sure. But my guess is Mon Feb
15th. Also she asked what date would her cost basis be in
the transferred stocks. I am at a loss over that one. Also I
was asked if it takes a week or so to transfer the stocks to
her Schwab account, and then she sells the two stocks ASAP
what is her valuation on the stocks she received.

Thanks in advance.

Kevin Gillogly

Laurie Frederiksen on

You need to follow the terms in your partnership agreement.

You should use whatever date you use to value the withdrawal as the same date for the stock transfer valuation date to avoid all kinds of problems. All stock valuations will be based on the closing prices in bivio that your club uses for your accounting. It will not matter what the broker shows for stock valuation when the shares are actually transferred.

We make the recommendations we do on valuing stock for a stock withdrawal based on many years of clubs getting themselves tangled up into all kinds of issues when they don't use those dates.

It is very important that you enter the withdrawal and use the withdrawal report to tell the broker exactly which lots of each stock to transfer. Do not actually give anything to the member until you have done this.

The members basis in the stock shares they receive will be listed on their withdrawal report.

The purchase date for the shares received will be the same as the clubs purchase date for each lot.

The amount the member receives when they sell the shares will depend on the price they are sold at. Her gain/loss on those sales will be the sale price minus her basis in the shares. If the shares sold were purchased more than a year before she sells them, the gain/loss will be long term, otherwise it will be short term.

Laurie Frederiksen
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On Sun, Feb 14, 2021 at 5:44 PM William Waskosky via bivio.com <user*33549200001@bivio.com> wrote:

I am the treasurer of ClubNet in Minnesota and did a withdrawal of two members on January 29 with stock and cash transfer from TDA to members' TDA account. I sent in the TD Ameritrade forms after our Meeting on February 2 by FAX. I thought the transfer for the stock and cash would happen in just a few days after they received the fax. That did not happen. After a week I sent an email through the TDA client service and they just got back to me on Feb. 11 that the transfer would take 5 to 7 more days. It sounds like TDA client services are behind on doing these transfers. In Minnesota, all branch offices are closed because of Covid 19 so you can't meet with someone in person. I would just keep the leaving member informed that this process will take time and it is out of your control. Give them the dates that you do things and any emails from TDA provides you to keep them informed. Our leaving members thought this transaction would happen in just two days once you send in the transfer form. Once form is sent the Treasurer in no longer in control of when transfer happens.

Bill W
Club Net Treasurer

On Sun, Feb 14, 2021 at 1:54 PM Kevin Gillogly via bivio.com <user*9886100001@bivio.com> wrote:
Fellow Treasurers,

While I consider myself fairly proficient in club accounting
matters, I am ready to make my withdrawal. I have reviewed
the webinars on withdrawals. So I know I will be
transferring appreciated stocks to the withdrawing partner.
I have the correct form from TD Ameritrade to execute the
transfer of stocks and I am clear on the transfer of funds.
I had the audit committee do another quick audit on the
books and we are set there.

So here are my questions. Our club has its valuation date on
Friday February 12th for our club meeting on Wed Feb 17th
per our Operating Procedure. Bivio recommends that we use
the member withdrawal date of two days prior to the business
meeting (or Monday Feb 15th). Wall Street is closed on Mon
Feb 15th for President's Day so the valuation will be the
same as Friday Feb 12th.

I was asked by the withdrawing partner what would be her
final valuation. I am not 100% sure. But my guess is Mon Feb
15th. Also she asked what date would her cost basis be in
the transferred stocks. I am at a loss over that one. Also I
was asked if it takes a week or so to transfer the stocks to
her Schwab account, and then she sells the two stocks ASAP
what is her valuation on the stocks she received.

Thanks in advance.

Kevin Gillogly

DEBI THORNE on

Bob is correct. The valuation date is the date that is written in your partnership agreement, operating procedures, or by laws. You would use the last valuation date prior to the withdrawal. The cost basis is a little more complex, but Bivio calculates that for the withdrawing member. It will be listed on the withdrawal report. The starting date of ownership begins when the club purchased to stock to determine if the stock is long term or short-term.

Debi

-----Original Message-----
From: club_cafe@bivio.com <club_cafe@bivio.com> On Behalf Of Bob Mann via bivio.com
Sent: Sunday, February 14, 2021 12:11 PM
To: club_cafe@bivio.com; Kevin Gillogly via bivio.com <user*9886100001@bivio.com>
Subject: Re: [club_cafe] Making sure I have my dates correctly for a full withdrawal from the club

It doesn't matter what Bivio says, what do your by-laws say? if the valuation date is Friday then it's Friday. Her final valuation will be what is reported using Friday's value. How she gets it as a combination of shares and cash is up to the club. Her cost basis will be detailed in the withdrawal report, and her basis won't change between when she gets it and sells it. I think she's looking to determine whether selling immediately will incur short-term or long-term capital gains. That one I can't answer. The value will change and that can only be determined by her, when she sells.

Bob Mann
> On 02/14/2021 2:53 PM Kevin Gillogly via bivio.com <user*9886100001@bivio.com> wrote:
>
>
> Fellow Treasurers,
>
> While I consider myself fairly proficient in club accounting matters,
> I am ready to make my withdrawal. I have reviewed the webinars on
> withdrawals. So I know I will be transferring appreciated stocks to
> the withdrawing partner.
> I have the correct form from TD Ameritrade to execute the transfer of
> stocks and I am clear on the transfer of funds.
> I had the audit committee do another quick audit on the books and we
> are set there.
>
> So here are my questions. Our club has its valuation date on Friday
> February 12th for our club meeting on Wed Feb 17th per our Operating
> Procedure. Bivio recommends that we use the member withdrawal date of
> two days prior to the business meeting (or Monday Feb 15th). Wall
> Street is closed on Mon Feb 15th for President's Day so the valuation
> will be the same as Friday Feb 12th.
>
> I was asked by the withdrawing partner what would be her final
> valuation. I am not 100% sure. But my guess is Mon Feb 15th. Also she
> asked what date would her cost basis be in the transferred stocks. I
> am at a loss over that one. Also I was asked if it takes a week or so
> to transfer the stocks to her Schwab account, and then she sells the
> two stocks ASAP what is her valuation on the stocks she received.
>
> Thanks in advance.
>
> Kevin Gillogly

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