club_cafe: Withdrawing Members

iras1 on

As long as you have at least two members, you can still maintain your club. What you are probably referring to is the rule that if more than 50% of the ownership interest in a partnership is sold or transferred within a year, the partnership is considered dissolved. Investment clubs are usually set up so that a withdrawal is not a sale or transfer of ownership interest. The withdrawing partner takes his/her share of the partnership (in stocks/cash) and the associated units are retired.

Ira Smilovitz

In a message dated 07/23/03 10:59:24 PM Eastern Daylight Time, donald@bivio.com writes:

Are there rules from the IRS or any others that state how
many club members can withdrawal from a Club in any given
year?

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