Why isn't it a taxable transaction? Is it only
because they are married or could one member "gift"
another member at any time?

--- IraS1@aol.com wrote:

>
> Absolutely not! That creates a taxable transaction
> for the withdrawing
> spouse where one doesn't exist.
>
> Ira Smilovitz
>
> In a message dated 8/23/2005 2:28:55 P.M. Eastern
> Daylight Time,
> llawshe@bivio.com writes:
>
> Seems as if all you have to do is withdraw fully
> one of the
> members and transfer all the units of one to the
> other.
>
> Timothy Thomas wrote:
> > Greetings! I have a husband and wife in the
> club who have
> > been individual members for 12 years and now want
> to become
> > one member. Can anyone help me with procedure to
> follow?
> > Thanks in advance
> >
> > Lounge Rat
>
>
>
>
>


"The knowledge of truth, even if harsh, has its pleasures"
Giacomo Leopardi (1798-1837)

> Why isn't it a taxable transaction? Is it only
> because they are married or could one member "gift"
> another member at any time?

If the units are transferred with no consideration involved, it's a
gift. Gifts do not have income tax consequences. There could be gift
consequences, but only gifts over a certain annual exemption are taxed.
Spouses can make unlimited gifts to each other.

So, in answer to your question, it's a gift if no consideration is
involved. Probably gifts would only occur between spouses of family
members.

Rip West
Saint Paul, MN

You are right! I forgot about that. Well what do we do?

IraS1@aol.com wrote:
> Absolutely not! That creates a taxable transaction for the withdrawing
> spouse where one doesn't exist.
>  
> Ira Smilovitz
>  
> In a message dated 8/23/2005 2:28:55 P.M. Eastern Daylight Time,
> llawshe@bivio.com writes:
> Seems as
> if all you have to do is withdraw fully one of the
> members and transfer all
> the units of one to the other.
>
> Timothy Thomas wrote:
> >
> Greetings!   I have a husband and wife in the club who have
> >
> been individual members for 12 years and now want to become
> > one
> member.  Can anyone help me with procedure to follow?
> > Thanks in
> advance
> >
> > Lounge Rat
>
>
>  

You are right! I forgot about that. Well what do we do?

IraS1@aol.com wrote:
> Absolutely not! That creates a taxable transaction for the withdrawing
> spouse where one doesn't exist.
>  
> Ira Smilovitz
>  
> In a message dated 8/23/2005 2:28:55 P.M. Eastern Daylight Time,
> llawshe@bivio.com writes:
> Seems as
> if all you have to do is withdraw fully one of the
> members and transfer all
> the units of one to the other.
>
> Timothy Thomas wrote:
> >
> Greetings!   I have a husband and wife in the club who have
> >
> been individual members for 12 years and now want to become
> > one
> member.  Can anyone help me with procedure to follow?
> > Thanks in
> advance
> >
> > Lounge Rat
>
>
>