In a message dated 2/11/2007 4:09:27 P.M. Eastern Standard Time,
valworona@comcast.net writes:
Val's new Question:
I'm questioning your implication that beginning and
ending percentages are to be ignored. In 06 we sold most loosing stocks and
ended with LT loss of $21,750 for 06. Loss assigned to 3 withdrawn members is
48% of total while remaining members get small ($418 or 3.69%) of long
term loss. This does not sound logical since we sold stock to cover
withdrawals of the three.
Second question which may be a tax question. One member
joined in December yet he shows same LT loss on his K-1 eventhough the
stock sells were made prior to his membership.
Plan to see my accountant this week to get stat tax done
and perhaps he can explain away some of these
things.
It looks like you set the allocation parameter to snapshot instead of
time-based. That would explain the new member getting a share of the loss which
was realized before he joined. Most clubs set their allocation to
time-based which means that each item of income/expense is allocated based on
the ownership percentages on that date.
Ira Smilovitz