Partial withdrawal and large remaining Tax Basis
| HelpRegister |
Partial withdrawal and large remaining Tax Basis Recently a partner made a 20k withdrawal. His tax basis only changed by about 4k. This means he has a huge tax basis left on our books but only a small capital value. Why doesn't the withdrawal pull more from his tax basis first? Is there anyway to control the amount taken from tax basis? If the partial withdrawal was made in cash, his tax basis is reduced by the amount of cash taken. If the partial withdrawal was paid with stock, the member assumes the club's cost basis in the stock (special rule for partial withdrawal) and his tax basis is reduced by the cost basis in the stock received.
This should explain your situation. If not, I would suggest contacting bivio support so they can look at your data.
Ira Smilovitz
In a message dated 02/13/09 07:45:47 Eastern Standard Time, mnlindsey@bivio.com writes:
|
|
||||||