Club disbanding
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Club disbanding Disbanding our club is under consideration. If we go ahead with this, we plan to sell all stock on a given date and then pay each member according to Bivio allocations. Please advise us of any special tax consquences; do we file our tax return for the current year as usual and provide each member with K-1 so she can pay her share of taxes on income and capital gains? Thanks! Strictly speaking, you would have to file your final 1065 by the 15th day of the fourth month after you disband
In a message dated 09/25/09 20:32:52 Eastern Daylight Time, sharonhfl@bivio.com writes:
[Sorry, sent before finished]
Strictly speaking, you would have to file your final 1065 by the 15th day of the fourth month after you disband but you can just file your final return at the usual time in early 2010. Each member would receive a K-1 AND a withdrawal report. There would be capital gains reported on the K-1 (from the sale of stocks by the club) and on the withdrawal report (for the difference between the value received and the members' tax basis in the club).
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 09/25/09 20:32:52 Eastern Daylight Time, sharonhfl@bivio.com writes:
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