Withdrawal at Tax Time

Charles Cremin on

I just received a withdrawal request from a club member, and
before I process it in accordance with our agreement, I want
to be sure it won't mess up the year end tax computation. I
would be writing the withdrawal check the first week in
January 2009. Of course 2008 taxes won't be done until at
least February.
     I know if I process it in January the basis info will
     not be right, but I can explain that to the member.
     Charlie Cremin

iras1 on

It shouldn't mess up your tax computations. The only thing you need to do is make sure that the transaction date is the date you actually issue a check or transfer securities to the withdrawing partner. This will ensure that the final K-1 is prepared in the correct tax year.

Ira Smilovitz

In a message dated 12/22/08 13:11:20 Eastern Standard Time, treascrem@bivio.com writes:

I just received a withdrawal request from a club member, and
before I process it in accordance with our agreement, I want
to be sure it won't mess up the year end tax computation. I
would be writing the withdrawal check the first week in
January 2009. Of course 2008 taxes won't be done until at
least February.
I know if I process it in January the basis info will
not be right, but I can explain that to the member.

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