Removing member from bivio with no tax implications
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Removing member from bivio with no tax implications Recently we accepted a new member. She was added to our bivio account when her capital contribution was deposited into our group account, but was never invested. Within 30 days, she decided that she'd made a mistake and submitted her resignation - which the club has accepted. Since her capital contribution was never invested, but only sat in the club's money market account, we have voted to return her contribution, plus any interest gained. Question: How can we remove her from our bivio account in a manner which insures that she does not get a year end tax statement with share distribution for the time she was listed as a member - as she will not be benefiting from any dividends or interest? Thank you, MM The easiest way is to delete all of her entries and give her back her investment as if she never joined the club. If you give her any interest on the money contributed, then you have to consider her as a full member of the club. Her withdrawal amount would include any change in value of the units she purchased (whether up or down) and she will get a K-1 at the end of the year.
Ira Smilovitz
Join me at Invest Ed 2010 Investor Education at Its Best(TM)
Baltimore, MD August 6 - 8, 2010 http://www.investor-education2010.org/ In a message dated 09/15/09 23:30:55 Eastern Daylight Time, milleratlarge@bivio.com writes:
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