What is the best way to payout a club member, cash payments or stocks
Dan Cohn on
Making a cash payment (if stock needs to be sold to cover the amount) taxes the entire members for capital gains. We just changed to Fidelity from Schwab since they would only allow us to transfer stock to the club itself at another brokerage. We transferred the stock using the withdrawal STOCK procedure on Bivio.. I think Fidelity will transfer stock only to the individual's personal account in Fidelity.
What is the best way to payout a club member, cash payments or stocks
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Dan Cohn 404 862 5640
Robert Shaw on
If you sell stocks, to make the payment in cash, all club-mem are hit with taxes.
If you transfer stock just the departing member has the tax obligation; but not until they sell.
Make certain all of your paperwork is correct before you do anything.
After the fact fixes can be expensive; ask me how I know.
> On Jun 19, 2024, at 6:49â¯PM, Patsy Rauch via bivio.com <user*38135700001@bivio.com> wrote:
>
> What is the best way to payout a club member, cash payments or stocks
On Wednesday, June 19, 2024, 5:04 PM, Robert Shaw via bivio.com <user*27509400001@bivio.com> wrote:
If you sell stocks, to make the payment in cash, all club-mem are hit with taxes.
If you transfer stock just the departing member has the tax obligation; but not until they sell.
Make certain all of your paperwork is correct before you do anything. After the fact fixes can be expensive; ask me how I know.
> On Jun 19, 2024, at 6:49 PM, Patsy Rauch via bivio.com <user*38135700001@bivio.com> wrote: > > What is the best way to payout a club member, cash payments or stocks
sharon kulkis on
If you want to sell losers, sell them and pay the cash. If you want to pay in stocks, transfer only appreciated stocks. Then you are paying them off at the lower cost of the stock. BetterInvesting has education on this principle.
On Wednesday, June 19, 2024, 5:04 PM, Robert Shaw via bivio.com <user*27509400001@bivio.com> wrote:
If you sell stocks, to make the payment in cash, all club-mem are hit with taxes.
If you transfer stock just the departing member has the tax obligation; but not until they sell.
Make certain all of your paperwork is correct before you do anything. After the fact fixes can be expensive; ask me how I know.
> On Jun 19, 2024, at 6:49 PM, Patsy Rauch via bivio.com <user*38135700001@bivio.com> wrote: > > What is the best way to payout a club member, cash payments or stocks
Robert Shaw on
We made some mistakes in the withdrawal and we had to pay bivio to help us straigten it out.
Make sure you have everything correct and in accordance with your PA.
On Jun 19, 2024, at 8:29 PM, Sharon Holley via bivio.com <user*25691200001@bivio.com> wrote:
On Wednesday, June 19, 2024, 5:04 PM, Robert Shaw via bivio.com <user*27509400001@bivio.com> wrote:
If you sell stocks, to make the payment in cash, all club-mem are hit with taxes.
If you transfer stock just the departing member has the tax obligation; but not until they sell.
Make certain all of your paperwork is correct before you do anything. After the fact fixes can be expensive; ask me how I know.
> On Jun 19, 2024, at 6:49 PM, Patsy Rauch via bivio.com <user*38135700001@bivio.com> wrote: > > What is the best way to payout a club member, cash payments or stocks
Tracy, Molly M on
Yes; agree that best way to payout departing members is by transferring stock, especially if your stocks have a lot of appreciation. We had 4 members leave at the same time and transferred stock to them using the withdrawal procedure on bivio and Fidelity
as our broker. This avoided the remaining members from have to pay increased taxes.
Sent from my iPhone
On Jun 19, 2024, at 6:20 PM, Dan Cohn via bivio.com <user*32501700001@bivio.com> wrote:
Making a cash payment (if stock needs to be sold to cover the amount) taxes the entire members for capital gains. We just changed to Fidelity from Schwab since they would only allow us to transfer stock to the club itself at another brokerage.
We transferred the stock using the withdrawal STOCK procedure on Bivio.. I think Fidelity will transfer stock only to the individual's personal account in Fidelity.
If you sell stocks, to make the payment in cash, all club-mem are hit with taxes.
If you transfer stock just the departing member has the tax obligation; but not until they sell.
Make certain all of your paperwork is correct before you do anything. After the fact fixes can be expensive; ask me how I know.
> On Jun 19, 2024, at 6:49 PM, Patsy Rauch via bivio.com <user*38135700001@bivio.com> wrote: > > What is the best way to payout a club member, cash payments or stocks
Sharon Holley on
They told me at Fidelity, that we could transfer stock from our club account at Fidelity to an individual account at Schwab. It better work. We are still in process of transferring our club account from Schwab to Fidelity.
If you sell stocks, to make the payment in cash, all club-mem are hit with taxes.
If you transfer stock just the departing member has the tax obligation; but not until they sell.
Make certain all of your paperwork is correct before you do anything. After the fact fixes can be expensive; ask me how I know.
> On Jun 19, 2024, at 6:49 PM, Patsy Rauch via bivio.com <user*38135700001@bivio.com> wrote: > > What is the best way to payout a club member, cash payments or stocks
Tracy, Molly M on
For our club's ease, we had all departing club partners set up an individual brokerage account at Fidelity (individuals can do this online in 1 min).
We transferred stock from our club account to departing members individual accounts, and the departing members could further transfer the stock to another brokerage if they choose to do so.
We also updated our partnership agreement , per Bivio's sample agreement, to state that this is required of partners.
From: club_cafe@bivio.com <club_cafe@bivio.com> on behalf of Sharon Holley via bivio.com <user*25691200001@bivio.com> Sent: Thursday, June 20, 2024 1:56 PM To: club_cafe@bivio.com <club_cafe@bivio.com> Subject: Re: [club_cafe] Stock partnership member withdrawal
They told me at Fidelity, that we could transfer stock from our club account at Fidelity to an individual account at Schwab. It better work. We are still in process of transferring our club account from Schwab to Fidelity.
If you sell stocks, to make the payment in cash, all club-mem are hit with taxes.
If you transfer stock just the departing member has the tax obligation; but not until they sell.
Make certain all of your paperwork is correct before you do anything.
After the fact fixes can be expensive; ask me how I know.
> On Jun 19, 2024, at 6:49 PM, Patsy Rauch via
bivio.com <user*38135700001@bivio.com> wrote:
>
> What is the best way to payout a club member, cash payments or stocks