Tax Basis
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Tax Basis Hello, Let me describe my quandry and then I will ask the question. I am comparing my current payments (and the club's totals) 'Member Status Reports' to those of last summer. And I have looked at several, back about two years. So I am comparing a 'down' market setting to a previous 'positive' one. I have read bivio's definition of Tax Basis and I think we all know the meaning of 'Market Value'. It looks to me like the Tax Basis value will always be more than the Market Value. I believe my question is - what is the connection (maybe mathematical formula) between Tax Basis and Market Value. Broadly now I would like to know the extent to which my payments have been diminished in this recession. I believe the IRR is an accurate estimate also, as is the value of one unit. Thanks all in advance Audie Brewton Simply put, your tax basis is the sum of all of your direct contributions less any withdrawals plus your share of the club's income, expense, gain and loss. There is no relationship between tax basis and market value other than that the difference between the two is your gain or loss should you withdraw from the club.
Whether your tax basis is more or less than the market value is partially a function of the market (as it affects market value) and partially a function of your club's actions (has it sold stock for a gain or loss).
Ira Smilovitz
In a message dated 05/15/09 12:53:47 Eastern Daylight Time, abrew@bivio.com writes:
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