What do we do when a member leaves the club?
I mean with the taxes?????
Are the taxes with the club taxes or with the members
taxes???
Please let me know.
Thanks,
Lab ratz Stock Club

There are two separate issues with regard to taxes when a member leaves a club -- the taxes on the income the club has already received, and the tax on the gain (or loss) in the value of the member's partnership interest. Fortunately, both are handled competently by the bivio software.

 

You will generate a withdrawal report for the member. This will calculate the difference in value received (payout) and paid-in plus earnings (cost basis). This difference is reported as a short or long term capital gain on Schedule D. The program will also calculate a Schedule K-1 at year end which will document all of the income and expenses which were allocated to that member during his/her period of membership in the year.

 

If you have further questions, just ask.

 

Ira Smilovitz