One member wants to withdraw cash

Marty Schmitt on

We have one member of our club that would like to pull some
of his money out of the club. He does not want to fully
withdraw from the club. We have enough cash to pay out the
amount he has requested.

What is the best way to do this?

Laurie Frederiksen on

Dear Marty,

The proper way to do this is to enter a partial withdrawal for this member. Make sure you use the
withdraw button on the Accounting>Members page to enter the information needed to update your club
accounting records correctly.

Laurie Frederiksen
bivio Inc.

iras1 on

Enter a partial withdrawal and use your cash to fund it.

Ira Smilovitz

Join me at Invest Ed 2010
Baltimore, MD August 6 - 8, 2010
http://www.investor-education2010.org/

In a message dated 08/26/09 21:36:24 Eastern Daylight Time, mbsohio@bivio.com writes:

We have one member of our club that would like to pull some
of his money out of the club. He does not want to fully
withdraw from the club. We have enough cash to pay out the
amount he has requested.

What is the best way to do this?

Eric Dobbs on

Marty Schmitt wrote:
> We have one member of our club that would like to pull some
> of his money out of the club. He does not want to fully
> withdraw from the club. We have enough cash to pay out the
> amount he has requested.

As Laurie and Ira mentioned already, you'll be entering a
partial withdrawal in cash.

I just wanted to also suggest that any time you enter a
withdrawal, partial or otherwise, you should reconcile your
books BEFORE you enter the withdrawal.

Take care.
-Eric
bivio Inc.

Marty Schmitt on

Thank you for the responses.

What are the tax consequences? Does the partial withdrawl
have any impact on the other members? Is there any
advantage or disadvantage to either the withdrawing member
or the other members?

Thanks again

Eric Dobbs wrote:
> Marty Schmitt wrote:
> > We have one member of our club that would like to pull some
> > of his money out of the club. He does not want to fully
> > withdraw from the club. We have enough cash to pay out the
> > amount he has requested.
>
> As Laurie and Ira mentioned already, you'll be entering a
> partial withdrawal in cash.
>
> I just wanted to also suggest that any time you enter a
> withdrawal, partial or otherwise, you should reconcile your
> books BEFORE you enter the withdrawal.
>
> Take care.
> -Eric
> bivio Inc.

iras1 on

There is no impact on the remaining partners. If the partial withdrawal is less than the tax basis of the partner taking the partial withdrawal, there is no tax consequence to him/her. If the partial withdrawal is more than the tax basis, the excess will be taxable as a capital gain -- long or short term based on the date that member first joined the club.

Ira Smilovitz

Join me at Invest Ed 2010
Baltimore, MD August 6 - 8, 2010
http://www.investor-education2010.org/

In a message dated 08/27/09 15:59:12 Eastern Daylight Time, mbsohio@bivio.com writes:

Thank you for the responses.

What are the tax consequences? Does the partial withdrawl
have any impact on the other members? Is there any
advantage or disadvantage to either the withdrawing member
or the other members?

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