Hello,
About a week ago I posted the first note on 'closing a
club'. The additional comments have been most helpful.

Another question: When closing, members will be receiving
their percent ownership in stock and their share of the
remaining cash.

I am looking at the "Withdrawal Statement", last section
-member's basis after withdrawal-

Let's say the tax basis is $1000 as is reported on bivio's
'Member Status' report.

I am not sure what amount will be shown as the last number
in that column because the stock transfer is not -Realized-
(as I understand realized and would not be so until the
member later sells the stock from his own brokerage), thus I
think that amount would be $0.00.

Is my interpretation correct?

A followup: If 5 stocks are transferred, I believe the cost
basis for each could be calculated, on the day of the
transfer, from the information on bivio's 'Valuation (NAV)'
report.

Thanks again, Audie Brewton

Thanks Ira,
The experts here are worth their weight in gold (today's
prices).
Even though this one club is disolving, I am in another and
will have this knowledge to impart.
Also the recent 'stock transfer' exchange was most
informative. I'm one of the nonaccountants of the world.
Audie Brewton
=======================
iras1 wrote:
> Your interpretation is somewhat correct. Here's what happens.
>  
> First, bivio will calculate the members tax basis on the withdrawal date before considering how the withdrawal is funded.
>  
> Then, once the composition of the withdrawal payout is fixed, the cash component is subtracted from the member's tax basis. If the cash component is less than the tax basis, the difference becomes the cost basis of the stock received. If more than one stock is received, bivio will calculate how to allocate that cost basis among the various stocks/lots. If the cash component is greater than the tax basis, the difference is a reportable capital gain and the stocks received will have $0 cost basis.
>  
>
>
> Ira Smilovitz
> Join me at InvestEd 2010
> Investor Education at Its BestTM
> Baltimore, MD August 6 - 8, 2010
> http://www.investor-education2010.org/
>  
> In a message dated 06/07/10 15:37:53 Eastern Daylight Time, abrew@bivio.com writes:
>
>
>
> .aolmailheader {font-size:8pt; color:black; font-family:Arial}
> a.aolmailheader:link {color:blue; text-decoration:underline; font-weight:normal}
> a.aolmailheader:visited {color:magenta; text-decoration:underline; font-weight:normal}
> a.aolmailheader:active {color:blue; text-decoration:underline; font-weight:normal}
> a.aolmailheader:hover {color:blue; text-decoration:underline; font-weight:normal}
>
> Hello,
> About a week ago I posted the first note on 'closing a
> club'.  The additional comments have been most helpful.
>
> Another question:  When closing, members will be receiving
> their percent ownership in stock and their share of the
> remaining cash.
>
> I am looking at the "Withdrawal Statement", last section
> -member's basis after withdrawal-
>
> Let's say the tax basis is $1000 as is reported on bivio's
> 'Member Status' report.
>
> I am not sure what amount will be shown as the last number
> in that column because the stock transfer is not -Realized-
> (as I understand realized and would not be so until the
> member later sells the stock from his own brokerage), thus I
> think that amount would be $0.00.
>
> Is my interpretation correct?
>
> A followup:  If 5 stocks are transferred, I believe the cost
> basis for each could be calculated, on the day of the
> transfer, from the information on bivio's
> 'Valuation (NAV)'
> report.
>
> Thanks again,           Audie Brewton
>
>  
>