We are a new club (10/30/01) and we have one partner who
wishes to fully withdraw from the club (personal problems
etc..)....my questions are as follows:
Question 1: In our Partnership Agreement, it states that
there is a $60.00 non-refundable fee upon joining the club.
He paid a total of $180.00 ($120.00 towards units / $60.0
towards iniating fee over the last four months). His
current market value is $153.42. When I go to cash him out,
it cashed him out at the $153.42 market value...now how do I
go about entering the $33.42 back into the account as that
is whats left of the non-refundable fee?? Would I enter the
$33.42 as misc. income or what??

Question 2: He did not make any payments in 2002 so do I
need to mark his K-1 as "Final" or will I have to give him
a K-1 for 2002 next year?? We have not made any purchases
of stock but did have some expenses in 2002 before he asked
to withdraw from the club. I am assuming that I will need
to give him a K-1 for 2002 as some expenses had been made
prior to him withdrawing.

Question 3: What forms do I need to print-out to "Close the
Books"?? Do I need to "Close the Books" or does Bivio
automatically do that for you??

I'm new at all of this and my questions may seem easy...but
I am at a loss.
If it doesn's make sense let me know and I will try to
clarify it with you.

Thanks for your help,

Jay
Treasurer
Ladies and Men In Green Retirement Assoc. (La Migra)

Jay,

I'll only address your second question...

You do NOT mark his K-1 as final because he was still a
member of your club on 12/31/01. You will have to provide an
additional K-1 for 2002 (marked final) which will reflect
any income and expenses allocated to his share of the
partnership from 1/1/02 until his actual withdrawal date.

Ira

Jay Visconti wrote:
> We are a new club (10/30/01) and we have one partner who
> wishes to fully withdraw from the club (personal problems
> etc..)....my questions are as follows:
> Question 1: In our Partnership Agreement, it states that
> there is a $60.00 non-refundable fee upon joining the club.
> He paid a total of $180.00 ($120.00 towards units / $60.0
> towards iniating fee over the last four months). His
> current market value is $153.42. When I go to cash him out,
> it cashed him out at the $153.42 market value...now how do I
> go about entering the $33.42 back into the account as that
> is whats left of the non-refundable fee?? Would I enter the
> $33.42 as misc. income or what??
>
> Question 2: He did not make any payments in 2002 so do I
> need to mark his K-1 as "Final" or will I have to give him
> a K-1 for 2002 next year?? We have not made any purchases
> of stock but did have some expenses in 2002 before he asked
> to withdraw from the club. I am assuming that I will need
> to give him a K-1 for 2002 as some expenses had been made
> prior to him withdrawing.
>
> Question 3: What forms do I need to print-out to "Close the
> Books"?? Do I need to "Close the Books" or does Bivio
> automatically do that for you??
>
> I'm new at all of this and my questions may seem easy...but
> I am at a loss.
> If it doesn's make sense let me know and I will try to
> clarify it with you.
>
> Thanks for your help,
>
> Jay
> Treasurer
> Ladies and Men In Green Retirement Assoc. (La Migra)

Jay Visconti wrote:
> Question 1: In our Partnership Agreement, it states that
> there is a $60.00 non-refundable fee upon joining the club.
> He paid a total of $180.00 ($120.00 towards units / $60.0
> towards iniating fee over the last four months). His
> current market value is $153.42. When I go to cash him out,
> it cashed him out at the $153.42 market value...now how do I
> go about entering the $33.42 back into the account as that
> is whats left of the non-refundable fee?? Would I enter the
> $33.42 as misc. income or what??
 
If you need to enter a withdrawal with a different amount than the
member's value, you can use the fee to make up for the difference. So
if the member's value is $153.42, and you paid them $120.00, then
enter a fee of $33.42.
 
It is also possible to enter a negative fee amount if the pay-out was
greater than the member value calculated by bivio.
 
Paul Moeller
bivio, Inc.