One last question, I apologize, but thank you for the
excellent responses.

So capital gains/losses would be treated similarly as
dividends in regards to increasing or decreasing a tax
basis??

IraS1@aol.com wrote:
> Increase or decrease (if expenses/losses are greater than income). Actually
> the change doesn't necessarily equal the taxable portion reported on the K-1
> forms because nondeductible expenses and returns of capital also affect the
> tax basis. But the concept is the same.
>  
> You can see the change by running a member status report on 12/30/03 and
> then on 12/31/03 if your club was in existence last year.
>  
> Ira Smilovitz
>  
> In a message dated 11/9/2004 11:56:23 AM Eastern Standard Time,
> ted_metro@bivio.com writes:
> So on
> 12/31 the "Total Paid" column on Bivio will just
> increase for each member
> relative to their proportionate
> share of dividends received during the
> calendar year?  Which
> means the increase would equal their taxable
> portion
> reported on their respective K-1 forms?
>
> Thanks for the quick
> and informative reply!!!
>
>
> IraS1@aol.com wrote:
> > Yes,
> dividends (and other income and expense) impact the cost basis of the
> >
> members in your club. However, the method for accounting for that change
> is
> > somewhat different from that used by mutual funds.
> >
>  
> > Within bivio, the cost basis adjustment is made on December 31
> after the
> > tax allocations have been determined. Unlike a mutual fund,
> where the dividends
> > are actually paid out to the investors who then
> have a choice of whether to
> > reinvest the dividend or keep the cash,
> investment club "dividends" are always
> > reinvested. So, rather than
> lowering the price per unit and purchasing more
> > units and the new
> (lower) price, bivio keeps the current unit value
> > constant and
> raises the cost per unit for each of the units you already own. The
> >
> net result is the same.
> >  
> > Ira Smilovitz 
> >
>  
> > In a message dated 11/9/2004 10:01:00 AM Eastern Standard
> Time,
> > ted_metro@bivio.com writes:
> > Do
> >  
> dividends impact the cost basis of the members in our
> > club?  It
> seems
> >   that because dividends raise the value of
> >
> the share price, they would have
> >   to be paid out as
> a
> > distribution (like a mutual fund) in order to
> impact
> >   cost
> > basis.  Then the share price
> would have to be adjusted down
> > to
> >   reflect the
> payout of the dividends, even though most (if
> > not all)
> members
> >   would just reinvest those dividends in
> more
> > shares (adjusting their cost
> >  
> basis).
> >
> > I guess it seems to me like a mutual fund.  They
> collect
> >   all
> > these dividends throughout the year,
> but until they pay them
> > out
> >   (usually in December)
> my cost basis doesn't change, but
> > my fund's share
> >  
> price is going up as the total value has
> > gone up from
> dividends.
> >
> > Can
> >   someone confirm or correct
> me about how dividends may or
> > may not impact our
> >  
> cost basis information for members??
> >
> >
> >
>
>
>