We had a member withdraw from the club. Instead of selling
stock to pay her out, we decided to buy her shares.  All but
one of us are spending a set amount and the balance will
come from cash in our account.  What is the best way to do
this to avoid a tax event for all members? How do I do this
in the accounting section?  What are the steps I need to do
as treasurer? Thanks.....

Regardless of what you think you have done, you haven't bought her shares. Process a withdrawal for the member and issue her a check for the amount of her withdrawal. For the members who are contributing new cash, enter a deposit for the new cash, buying units at the appropriate valuation date value. There is no taxable event for the club. Of course, the club could have been better off had it transferred appreciated stock to the withdrawing member, but it's too late for that.

 

Ira Smilovitz

 

Ira Smilovitz