club_cafe: Steps to Shutdown an Investment Club via Bivio?

iras1 on

In a message dated 8/23/2007 1:03:50 P.M. Eastern Daylight Time, biegelboy@bivio.com writes:

Hello -

Would someone please provide me a play by play of how-to
shutdown/closeout an investment club via bivio, and all the
other steps needed to file for tax purposes, too?

The instructions on the BI website and/or at the ICLUB website should work fine for bivio. The differences will be obvious.

I have already liquidated the portfolio and I just need the
proper functions to Withdraw all 4 members and what needs to
be done and when it needs to be reported to the IRS for
taxes.

One question:

What about misc dividends that may or may not come in after
the shutdown? How are those treated? TAX and Members?

Since most dividends are paid quarterly, review the stocks you just sold and see if any of them had ex-dividend dates before you sold them. If they do, then you will be receiving a dividend. You should be able to calculate the dividend amount (# shares * dividend/share). Enter the dividend as if already paid or create a suspense account and enter it there. Once you have all of the anticipated dividends entered, enter any final expenses (postage, copying, etc.) -- again enter as if already paid. Once all of your anticipated transactions are entered, you can process the withdrawals for the remaining members.

Technically, you need to file your final tax returns by the 15th day of the 4th month after you cease operations. I believe that bivio will prepare a short-year final return using the 2006 tax forms, but if I'm wrong, Rob will correct me. If not, you can generate a tax allocation report. Using that and the withdrawal reports should give you everything you need to manually complete your tax return.

Ira Smilovitz

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