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

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

iras1 on

In a message dated 12/10/2007 9:39:21 P.M. Eastern Standard Time, peter@bivio.com writes:

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.

The cost basis of the shares received is the member's cost basis in the club less any cash received. The program will do all of the calculations.

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

Yes. It will be found in the withdrawal report for that member.

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

Yes.

Ira Smilovitz

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