Withdrawing member
could this method be applied to a member simply withdrawing part of their investment?
Our club found out that the same rules do not apply for partial withdrawals, so not as advantageous.
On Wed, Mar 10, 2021 at 4:35 PM Mary or Chuck Destefani via bivio.com <user*27156300001@bivio.com> wrote:
could this method be applied to a member simply withdrawing part of their investment?
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Was a reason given for not allowing this type of transaction on partial withdrawals?
Our club found out that the same rules do not apply for partial withdrawals, so not as advantageous.On Wed, Mar 10, 2021 at 4:35 PM Mary or Chuck Destefani via bivio.com <user*27156300001@bivio.com> wrote:could this method be applied to a member simply withdrawing part of their investment?
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The part that's different is the cost basis for the stock in the partial withdrawal. This comes into play when the person sells the stock. It's different from the cost basis for a complete withdrawal. As I recall (it's been a while) the cost basis for the stock in the partial withdrawal is the cost basis from when the club purchased it. Bivio calculated it, so that wasn't the issue, but the cost basis and capital gain was a surprise for the member -- they were selling the stock right away to fund a family need. Not to say that it shouldn't have been done, just that it played out differently than we all expected and we wished we had researched it more carefully in advance.
On Wed, Mar 10, 2021 at 8:02 PM Mary or Chuck Destefani via bivio.com <user*27156300001@bivio.com> wrote:
Was a reason given for not allowing this type of transaction on partial withdrawals?Our club found out that the same rules do not apply for partial withdrawals, so not as advantageous.On Wed, Mar 10, 2021 at 4:35 PM Mary or Chuck Destefani via bivio.com <user*27156300001@bivio.com> wrote:could this method be applied to a member simply withdrawing part of their investment?
--P Please consider the environment before printing this e-mail.
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P Please consider the environment before printing this e-mail.
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The part that's different is the cost basis for the stock in the partial withdrawal. This comes into play when the person sells the stock. It's different from the cost basis for a complete withdrawal. As I recall (it's been a while) the cost basis for the stock in the partial withdrawal is the cost basis from when the club purchased it. Bivio calculated it, so that wasn't the issue, but the cost basis and capital gain was a surprise for the member -- they were selling the stock right away to fund a family need. Not to say that it shouldn't have been done, just that it played out differently than we all expected and we wished we had researched it more carefully in advance.On Wed, Mar 10, 2021 at 8:02 PM Mary or Chuck Destefani via bivio.com <user*27156300001@bivio.com> wrote:Was a reason given for not allowing this type of transaction on partial withdrawals?Our club found out that the same rules do not apply for partial withdrawals, so not as advantageous.On Wed, Mar 10, 2021 at 4:35 PM Mary or Chuck Destefani via bivio.com <user*27156300001@bivio.com> wrote:could this method be applied to a member simply withdrawing part of their investment?
--P Please consider the environment before printing this e-mail.
--P Please consider the environment before printing this e-mail.
Thank you for the response. It seems that what sounds like a simple process, could be a pandora's box.
On Wed, Mar 10, 2021, 8:45 PM Laurie Frederiksen <laurie@bivio.biz> wrote:
THere are the tax consequences for the club and for the member if a partial withdrawal is paid with stock:
Cash Versus Stock Partial Withdrawal Payout
It is different for a full withdrawal payout.
Laurie Frederiksen
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Click here to Subscribe to the Club Cafe email list. Click here to UnsubscribeThe part that's different is the cost basis for the stock in the partial withdrawal. This comes into play when the person sells the stock. It's different from the cost basis for a complete withdrawal. As I recall (it's been a while) the cost basis for the stock in the partial withdrawal is the cost basis from when the club purchased it. Bivio calculated it, so that wasn't the issue, but the cost basis and capital gain was a surprise for the member -- they were selling the stock right away to fund a family need. Not to say that it shouldn't have been done, just that it played out differently than we all expected and we wished we had researched it more carefully in advance.On Wed, Mar 10, 2021 at 8:02 PM Mary or Chuck Destefani via bivio.com <user*27156300001@bivio.com> wrote:Was a reason given for not allowing this type of transaction on partial withdrawals?Our club found out that the same rules do not apply for partial withdrawals, so not as advantageous.On Wed, Mar 10, 2021 at 4:35 PM Mary or Chuck Destefani via bivio.com <user*27156300001@bivio.com> wrote:could this method be applied to a member simply withdrawing part of their investment?
--P Please consider the environment before printing this e-mail.
--P Please consider the environment before printing this e-mail.