>>What is needed to merger two seperate clubs?  Our club has
been presented with an opporunity to merge,  however,  we
are not sure what is required/needed?

>>Any thoughts?

DON'T DO IT!!! The tax consequences are horrible and cannot be tracked using bivio (or any other investment club accounting software). If you want to merge clubs, one club should liquidate all of irs holdings and distribute the cash to its members. Then the members can buy into the other club. Or both clubs can dissolve and form a new club.

 

If you just combine the clubs and their stock holdings, you have to track not only the original cost basis of each security, but the value on the merger date. You have to allocate gains/losses from the contributed stocks to those members that contributed them. See IRS Pub. 541, Partnerships, for an in-depth discussion of the issues. www.irs.gov/pub/irs-pdf/p541.pdf

 

Ira Smilovitz