Hi,

I just entered a partial withdrawal for one of our club
members. We handled the partial withdrawal by transferring
stocks to the member's account. On the Withdrawal form, I
used the settlement date shown in our broker statement, and
I entered the dollar figure for the two stocks (BBBY and
COMS) as the closing price for that date (May 29). The
dollar amounts are $8132 and $4680, respectively. I also
entered the stock symbols and date, which showed as the same
amount before I submitted the change. The total shown is
$12,812.

When I ran a Transaction Ledger report, the amount shows as
$12,697.85, a difference of 114.15.

Can you explain the difference? How do I account for this?

Thanks,
Matt Matthews
OLTP Investment Club

Thanks, Rip.

I had thought the transaction ledger would give the price at
the time of the transaction. Good to know how it actually
works.
 
In this case, the member made out OK on this transaction.
BBBY was up a little, and COMS was down a little. I believe
he will come out better tax-wise than if we had given him
cash.
 
Thanks again,
Matt Matthews
OLTP Investment Club
 

Rip West wrote:
> Matt,
>  
> Transferring appreciated stocks is the preferred method of
> funding complete withdrawals. However, it is not a good idea to use these for
> partials. It can be very disadvantageous to the partner making the withdrawal.
>
>  
> In your case, I believe the apparent problem stems from
> the fact that you are misreading the Transaction Ledger. The amounts shown are
> the cost [tax basis] figures for the stocks, not the market values on the date
> of withdrawals.
>  
> <<Can you explain the difference?  How do I
> account for this?>>
>  
> I hope the above explained the difference. You don't have
> to account for it. The program has taken care of it. The member's value should
> have been reduced by the market value of the stocks transferred.
>
> Rip West
> Saint Paul,
> MN