Dissolution of Club - Distribution of Stock to some members - club_cafe

Dissolution of Club - Distribution of Stock to some members

Peter Ruh on

Hello,

We are dissolving are 15 year old club in which the nav went
from 25 - 100.

Of the the 15 members 7 want to receive stock and the rest
cash.

If I do member withdrawal and do full and say cash it is
straightforward. My question is what will be the cost basis
for the stock I distributed to the members.

Will the BIVIO give me basis for each member so that when
they take the shares they have a accurate cost basis?

is it ok if some members take the cash and pay taxes while
others take stock to defer the capgain?

Thanks in advance,
Peter

Rip West on

Peter,

If I do member withdrawal and do full and say cash it is straightforward. My question is what will be the cost basis for the stock I distributed to the members.
>>

The cost basis for the stock distributed to a member will be his tax basis for the entire partnership interest, less any cash received. The computation can get a little complicated if more than 1 stock is distributed to a member, but the software will handle these complications.

Will the BIVIO give me basis for each member so that when they take the shares they have a accurate cost basis?
>>

Yes.

is it ok if some members take the cash and pay taxes while others take stock to defer the capgain?
>>

Yes.

Rip West
Saint Paul, MN

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