MEMBER WANTS TO BUY OUT ANOTHER MEMBER
WE HAVE A MOTHER-DAUGHTER COMBINATION THAT ISN'T WORKING
OUT. MOM WANTED DAUGHTER IN THE CLUB AND DAUGHTER WASN'T
REALLY INTERSSTED . MOM NOW WANTS TO BUY OUT DAUGHTER, SO
WE DON'T HAVE TO SELL STOCK TO PAY DAUGHTER OFF.
HOW DO I DO THAT, AS THE FINANCIAL OFFICER?
OUT. MOM WANTED DAUGHTER IN THE CLUB AND DAUGHTER WASN'T
REALLY INTERSSTED . MOM NOW WANTS TO BUY OUT DAUGHTER, SO
WE DON'T HAVE TO SELL STOCK TO PAY DAUGHTER OFF.
HOW DO I DO THAT, AS THE FINANCIAL OFFICER?
Deannie Rule wrote:
> WE HAVE A MOTHER-DAUGHTER COMBINATION THAT ISN'T WORKING
> OUT. MOM WANTED DAUGHTER IN THE CLUB AND DAUGHTER WASN'T
> REALLY INTERSSTED . MOM NOW WANTS TO BUY OUT DAUGHTER, SO
> WE DON'T HAVE TO SELL STOCK TO PAY DAUGHTER OFF.
>
> HOW DO I DO THAT, AS THE FINANCIAL OFFICER?
To answer my own question:
ok. so do i just go thru the member withdrawal routine and
instead of writing the check to the departing daughter, i
write it to her mother, then her mother deposits that amount
in her membership dues and I just apply the whole amount as
a "dues" ? will the software let me do that?
or will that mess up the IRS......as they'll receive notice
that daughter received $$$ amount, when she did not.
> WE HAVE A MOTHER-DAUGHTER COMBINATION THAT ISN'T WORKING
> OUT. MOM WANTED DAUGHTER IN THE CLUB AND DAUGHTER WASN'T
> REALLY INTERSSTED . MOM NOW WANTS TO BUY OUT DAUGHTER, SO
> WE DON'T HAVE TO SELL STOCK TO PAY DAUGHTER OFF.
>
> HOW DO I DO THAT, AS THE FINANCIAL OFFICER?
To answer my own question:
ok. so do i just go thru the member withdrawal routine and
instead of writing the check to the departing daughter, i
write it to her mother, then her mother deposits that amount
in her membership dues and I just apply the whole amount as
a "dues" ? will the software let me do that?
or will that mess up the IRS......as they'll receive notice
that daughter received $$$ amount, when she did not.
You almost have it.
Perform a normal withdrawal of the daughter. Write the check
to her. Have Mommy write a check in the same amount to the
club. Deposit Mommy's check as an additional payment and
issue her additional units.
Mommy and daughter are separate tax entities. Treat them no
different than if two strangers were involved. One leaving
the club and one joining on the same day.
Jack Ranby, Treasurer
Grants Partners Investment Club
Deannie Rule wrote:
> Deannie Rule wrote:
> > WE HAVE A MOTHER-DAUGHTER COMBINATION THAT ISN'T WORKING
> > OUT. MOM WANTED DAUGHTER IN THE CLUB AND DAUGHTER WASN'T
> > REALLY INTERSSTED . MOM NOW WANTS TO BUY OUT DAUGHTER, SO
> > WE DON'T HAVE TO SELL STOCK TO PAY DAUGHTER OFF.
> >
> > HOW DO I DO THAT, AS THE FINANCIAL OFFICER?
>
> To answer my own question:
>
>
>
> ok. so do i just go thru the member withdrawal routine and
> instead of writing the check to the departing daughter, i
> write it to her mother, then her mother deposits that amount
> in her membership dues and I just apply the whole amount as
> a "dues" ? will the software let me do that?
>
> or will that mess up the IRS......as they'll receive notice
> that daughter received $$$ amount, when she did not.
Perform a normal withdrawal of the daughter. Write the check
to her. Have Mommy write a check in the same amount to the
club. Deposit Mommy's check as an additional payment and
issue her additional units.
Mommy and daughter are separate tax entities. Treat them no
different than if two strangers were involved. One leaving
the club and one joining on the same day.
Jack Ranby, Treasurer
Grants Partners Investment Club
Deannie Rule wrote:
> Deannie Rule wrote:
> > WE HAVE A MOTHER-DAUGHTER COMBINATION THAT ISN'T WORKING
> > OUT. MOM WANTED DAUGHTER IN THE CLUB AND DAUGHTER WASN'T
> > REALLY INTERSSTED . MOM NOW WANTS TO BUY OUT DAUGHTER, SO
> > WE DON'T HAVE TO SELL STOCK TO PAY DAUGHTER OFF.
> >
> > HOW DO I DO THAT, AS THE FINANCIAL OFFICER?
>
> To answer my own question:
>
>
>
> ok. so do i just go thru the member withdrawal routine and
> instead of writing the check to the departing daughter, i
> write it to her mother, then her mother deposits that amount
> in her membership dues and I just apply the whole amount as
> a "dues" ? will the software let me do that?
>
> or will that mess up the IRS......as they'll receive notice
> that daughter received $$$ amount, when she did not.
I would have the mother (or any other members) contribute enough cash
("dues") to fund the withdraw, and then process the withdraw and cut the
check to the daughter. KISS.
Rich Hill
> -----Original Message-----
> From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On
> Behalf Of Deannie Rule
> Sent: Friday, October 15, 2010 10:51 AM
> To: club_cafe@bivio.com
> Subject: club_cafe: Re: MEMBER WANTS TO BUY OUT ANOTHER MEMBER
>
> Deannie Rule wrote:
> > WE HAVE A MOTHER-DAUGHTER COMBINATION THAT ISN'T WORKING OUT. MOM
> > WANTED DAUGHTER IN THE CLUB AND DAUGHTER WASN'T REALLY
> INTERSSTED .
> > MOM NOW WANTS TO BUY OUT DAUGHTER, SO WE DON'T HAVE TO SELL
> STOCK TO
> > PAY DAUGHTER OFF.
> >
> > HOW DO I DO THAT, AS THE FINANCIAL OFFICER?
>
> To answer my own question:
>
>
>
> ok. so do i just go thru the member withdrawal routine and
> instead of writing the check to the departing daughter, i
> write it to her mother, then her mother deposits that amount
> in her membership dues and I just apply the whole amount as a
> "dues" ? will the software let me do that?
>
> or will that mess up the IRS......as they'll receive notice
> that daughter received $$$ amount, when she did not.
>
("dues") to fund the withdraw, and then process the withdraw and cut the
check to the daughter. KISS.
Rich Hill
> -----Original Message-----
> From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On
> Behalf Of Deannie Rule
> Sent: Friday, October 15, 2010 10:51 AM
> To: club_cafe@bivio.com
> Subject: club_cafe: Re: MEMBER WANTS TO BUY OUT ANOTHER MEMBER
>
> Deannie Rule wrote:
> > WE HAVE A MOTHER-DAUGHTER COMBINATION THAT ISN'T WORKING OUT. MOM
> > WANTED DAUGHTER IN THE CLUB AND DAUGHTER WASN'T REALLY
> INTERSSTED .
> > MOM NOW WANTS TO BUY OUT DAUGHTER, SO WE DON'T HAVE TO SELL
> STOCK TO
> > PAY DAUGHTER OFF.
> >
> > HOW DO I DO THAT, AS THE FINANCIAL OFFICER?
>
> To answer my own question:
>
>
>
> ok. so do i just go thru the member withdrawal routine and
> instead of writing the check to the departing daughter, i
> write it to her mother, then her mother deposits that amount
> in her membership dues and I just apply the whole amount as a
> "dues" ? will the software let me do that?
>
> or will that mess up the IRS......as they'll receive notice
> that daughter received $$$ amount, when she did not.
>
Interesting question. I'm not an expert but I believe that even though the mother is "buying" the daughter out, the daughter will have to pay any capital gains on the money if there is any. Unless she can somehow give the stock to her mom and her mom can pay her directly in cash.
Sincerely,
Due to possible illegal advice, I am keeping myself anonymous from the IRS. 
From: Deannie Rule <mcrule@bivio.com>
To: club_cafe@bivio.com
Sent: Fri, October 15, 2010 7:50:40 AM
Subject: club_cafe: Re: MEMBER WANTS TO BUY OUT ANOTHER MEMBER
Deannie Rule wrote:
> WE HAVE A MOTHER-DAUGHTER COMBINATION THAT ISN'T WORKING
> OUT. MOM WANTED DAUGHTER IN THE CLUB AND DAUGHTER WASN'T
> REALLY INTERSSTED . MOM NOW WANTS TO BUY OUT DAUGHTER, SO
> WE DON'T HAVE TO SELL STOCK TO PAY DAUGHTER OFF.
>
> HOW DO I DO THAT, AS THE FINANCIAL OFFICER?
To answer my own question:
ok. so do i just go thru the member withdrawal routine and
instead of writing the check to the departing daughter, i
write it to her mother, then her mother deposits that amount
in her membership dues and I just apply the whole amount as
a "dues" ? will the software let me do that?
or will that mess up the IRS......as they'll receive notice
that daughter received $$$ amount, when she did not.
John W Ranby wrote:
> You almost have it.
>
> Perform a normal withdrawal of the daughter. Write the check
> to her. Have Mommy write a check in the same amount to the
> club. Deposit Mommy's check as an additional payment and
> issue her additional units.
>
> Mommy and daughter are separate tax entities. Treat them no
> different than if two strangers were involved. One leaving
> the club and one joining on the same day.
>
> Jack Ranby, Treasurer
> Grants Partners Investment Club
>
> Deannie Rule wrote:
> > Deannie Rule wrote:
> > > WE HAVE A MOTHER-DAUGHTER COMBINATION THAT ISN'T WORKING
> > > OUT. MOM WANTED DAUGHTER IN THE CLUB AND DAUGHTER WASN'T
> > > REALLY INTERSSTED . MOM NOW WANTS TO BUY OUT DAUGHTER, SO
> > > WE DON'T HAVE TO SELL STOCK TO PAY DAUGHTER OFF.
> > >
> > > HOW DO I DO THAT, AS THE FINANCIAL OFFICER?
> >
> > To answer my own question:
> >
> >
> >
> > ok. so do i just go thru the member withdrawal routine and
> > instead of writing the check to the departing daughter, i
> > write it to her mother, then her mother deposits that amount
> > in her membership dues and I just apply the whole amount as
> > a "dues" ? will the software let me do that?
> >
> > or will that mess up the IRS......as they'll receive notice
> > that daughter received $$$ amount, when she did not.
simple enough. thank you.
> You almost have it.
>
> Perform a normal withdrawal of the daughter. Write the check
> to her. Have Mommy write a check in the same amount to the
> club. Deposit Mommy's check as an additional payment and
> issue her additional units.
>
> Mommy and daughter are separate tax entities. Treat them no
> different than if two strangers were involved. One leaving
> the club and one joining on the same day.
>
> Jack Ranby, Treasurer
> Grants Partners Investment Club
>
> Deannie Rule wrote:
> > Deannie Rule wrote:
> > > WE HAVE A MOTHER-DAUGHTER COMBINATION THAT ISN'T WORKING
> > > OUT. MOM WANTED DAUGHTER IN THE CLUB AND DAUGHTER WASN'T
> > > REALLY INTERSSTED . MOM NOW WANTS TO BUY OUT DAUGHTER, SO
> > > WE DON'T HAVE TO SELL STOCK TO PAY DAUGHTER OFF.
> > >
> > > HOW DO I DO THAT, AS THE FINANCIAL OFFICER?
> >
> > To answer my own question:
> >
> >
> >
> > ok. so do i just go thru the member withdrawal routine and
> > instead of writing the check to the departing daughter, i
> > write it to her mother, then her mother deposits that amount
> > in her membership dues and I just apply the whole amount as
> > a "dues" ? will the software let me do that?
> >
> > or will that mess up the IRS......as they'll receive notice
> > that daughter received $$$ amount, when she did not.
simple enough. thank you.
The daughter may have a capital gain or loss associated with the withdrawal. This will be shown on the withdrawal report. It is the difference between her basis in her club investment and the amount she is withdrawing. You can find the report using the withdrawal report link on the Accounting>Reports page.
She will also will be receiving a K-1 for 2010 which will show her share of any club gains or losses allocated to her during the time she was a member this year. She will report this on her personal taxes as she has in other years.
--
Laurie Frederiksen
Invest with your friends!
www.bivio.com
Follow us on twitter! www.twitter.com/bivio
She will also will be receiving a K-1 for 2010 which will show her share of any club gains or losses allocated to her during the time she was a member this year. She will report this on her personal taxes as she has in other years.
--
Laurie Frederiksen
Invest with your friends!
www.bivio.com
Follow us on twitter! www.twitter.com/bivio
You don't. You process the daughter's withdrawal as you normally would. The mother makes an additional contribution of $x, where $x is the same amount as you need to pay the daughter. The mother receives new units for her contribution and the club issues a check to the daughter.
As another option, the club can transfer appreciated stock to the daughter. This benefits the club because the remaining members will defer their share of the unrealized gain until they each withdraw from the club and the daughter gets to choose when she sells the stock and realizes her gain/loss from her membership in the club.
Ira Smilovitz
Join me at InvestEd 2011
In a message dated 10/15/10 10:38:00 Eastern Daylight Time, mcrule@bivio.com writes:
WE HAVE A MOTHER-DAUGHTER COMBINATION THAT ISN'T WORKING
OUT. MOM WANTED DAUGHTER IN THE CLUB AND DAUGHTER WASN'T
REALLY INTERSSTED . MOM NOW WANTS TO BUY OUT DAUGHTER, SO
WE DON'T HAVE TO SELL STOCK TO PAY DAUGHTER OFF.
HOW DO I DO THAT, AS THE FINANCIAL OFFICER?
Please take me out of this group. Thank You Will Wietfeldt
From: iras1 <iras1@aol.com>
To: The Club Cafe <club_cafe@bivio.com>
Sent: Fri, October 15, 2010 10:50:44 AM
Subject: Re: club_cafe: MEMBER WANTS TO BUY OUT ANOTHER MEMBER
You don't. You process the daughter's withdrawal as you normally would. The mother makes an additional contribution of $x, where $x is the same amount as you need to pay the daughter. The mother receives new units for her contribution and the club issues a check to the daughter.
As another option, the club can transfer appreciated stock to the daughter. This benefits the club because the remaining members will defer their share of the unrealized gain until they each withdraw from the club and the daughter gets to choose when she sells the stock and realizes her gain/loss from her membership in the club.
Ira Smilovitz
Join me at InvestEd 2011
In a message dated 10/15/10 10:38:00 Eastern Daylight Time, mcrule@bivio.com writes:
WE HAVE A MOTHER-DAUGHTER COMBINATION THAT ISN'T WORKING
OUT. MOM WANTED DAUGHTER IN THE CLUB AND DAUGHTER WASN'T
REALLY INTERSSTED . MOM NOW WANTS TO BUY OUT DAUGHTER, SO
WE DON'T HAVE TO SELL STOCK TO PAY DAUGHTER OFF.
HOW DO I DO THAT, AS THE FINANCIAL OFFICER?
W/H Wietfeldt wrote:
> Please take me out of this group. Thank You Will Wietfeldt
>
> Will, I think you are free to come and go as you please. Don't need permission.
thank you everyone. i believe i willl treat this as a
regular withdrawal , sans penalty fee, and a regular
member's (mom's) rather large contribution.
> I am curious , however, about how to transfer stock. i'll explore that .
deannie
>
>
> From: iras1 <iras1@aol.com>
> To: The Club Cafe <club_cafe@bivio.com>
> Sent: Fri, October 15, 2010 10:50:44 AM
> Subject: Re: club_cafe: MEMBER WANTS TO BUY OUT ANOTHER MEMBER
>
>
> You don't. You process the daughter's withdrawal as you normally would. The mother makes an additional contribution of $x, where $x is the same amount as you need to pay the daughter. The mother receives new units for her contribution and the club issues a check to the daughter.
>
> As another option, the club can transfer appreciated stock to the daughter. This benefits the club because the remaining members will defer their share of the unrealized gain until they each withdraw from the club and the daughter gets to choose when she sells the stock and realizes her gain/loss from her membership in the club.
>
>
>
> Ira Smilovitz
> Join me at InvestEd 2011
> Investor Education at Its BestTM
> San Diego, CA May 13-15, 2011
> http://www.investor-education2011.org/
>
>
>
> In a message dated 10/15/10 10:38:00 Eastern Daylight Time, mcrule@bivio.com writes:
>
> WE HAVE A MOTHER-DAUGHTER COMBINATION THAT ISN'T WORKING
> OUT. MOM WANTED DAUGHTER IN THE CLUB AND DAUGHTER WASN'T
> REALLY INTERSSTED . MOM NOW WANTS TO BUY OUT DAUGHTER, SO
> WE DON'T HAVE TO SELL STOCK TO PAY DAUGHTER OFF.
>
> HOW DO I DO THAT, AS THE FINANCIAL OFFICER?
>
>
>
>
>
>
>
>
>
>
>
>
> Please take me out of this group. Thank You Will Wietfeldt
>
> Will, I think you are free to come and go as you please. Don't need permission.
thank you everyone. i believe i willl treat this as a
regular withdrawal , sans penalty fee, and a regular
member's (mom's) rather large contribution.
> I am curious , however, about how to transfer stock. i'll explore that .
deannie
>
>
> From: iras1 <iras1@aol.com>
> To: The Club Cafe <club_cafe@bivio.com>
> Sent: Fri, October 15, 2010 10:50:44 AM
> Subject: Re: club_cafe: MEMBER WANTS TO BUY OUT ANOTHER MEMBER
>
>
> You don't. You process the daughter's withdrawal as you normally would. The mother makes an additional contribution of $x, where $x is the same amount as you need to pay the daughter. The mother receives new units for her contribution and the club issues a check to the daughter.
>
> As another option, the club can transfer appreciated stock to the daughter. This benefits the club because the remaining members will defer their share of the unrealized gain until they each withdraw from the club and the daughter gets to choose when she sells the stock and realizes her gain/loss from her membership in the club.
>
>
>
> Ira Smilovitz
> Join me at InvestEd 2011
> Investor Education at Its BestTM
> San Diego, CA May 13-15, 2011
> http://www.investor-education2011.org/
>
>
>
> In a message dated 10/15/10 10:38:00 Eastern Daylight Time, mcrule@bivio.com writes:
>
> WE HAVE A MOTHER-DAUGHTER COMBINATION THAT ISN'T WORKING
> OUT. MOM WANTED DAUGHTER IN THE CLUB AND DAUGHTER WASN'T
> REALLY INTERSSTED . MOM NOW WANTS TO BUY OUT DAUGHTER, SO
> WE DON'T HAVE TO SELL STOCK TO PAY DAUGHTER OFF.
>
> HOW DO I DO THAT, AS THE FINANCIAL OFFICER?
>
>
>
>
>
>
>
>
>
>
>
>
Please take me out of this club immediately. Thanks.
Rev. Yvonne D. McCoy
Holistic Healing for the Mind, Body and Soul
Ph: 502.664.0373
Be transformed by the renewing of your mind! Rom. 12:2
-----Original Message-----
From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of Deannie
Rule
Sent: Saturday, October 16, 2010 2:25 AM
To: club_cafe@bivio.com
Subject: club_cafe: Re: MEMBER WANTS TO BUY OUT ANOTHER MEMBER
W/H Wietfeldt wrote:
> Please take me out of this group. Thank You Will Wietfeldt
>
> Will, I think you are free to come and go as you please. Don't need
permission.
thank you everyone. i believe i willl treat this as a
regular withdrawal , sans penalty fee, and a regular
member's (mom's) rather large contribution.
> I am curious , however, about how to transfer stock. i'll explore that .
deannie
>
>
> From: iras1 <iras1@aol.com>
> To: The Club Cafe <club_cafe@bivio.com>
> Sent: Fri, October 15, 2010 10:50:44 AM
> Subject: Re: club_cafe: MEMBER WANTS TO BUY OUT ANOTHER MEMBER
>
>
> You don't. You process the daughter's withdrawal as you normally would.
The mother makes an additional contribution of $x, where $x is the same
amount as you need to pay the daughter. The mother receives new units for
her contribution and the club issues a check to the daughter.
>
> As another option, the club can transfer appreciated stock to the
daughter. This benefits the club because the remaining members will defer
their share of the unrealized gain until they each withdraw from the club
and the daughter gets to choose when she sells the stock and realizes her
gain/loss from her membership in the club.
>
>
>
> Ira Smilovitz
> Join me at InvestEd 2011
> Investor Education at Its BestTM
> San Diego, CA May 13-15, 2011
> http://www.investor-education2011.org/
>
>
>
> In a message dated 10/15/10 10:38:00 Eastern Daylight Time,
mcrule@bivio.com writes:
>
> WE HAVE A MOTHER-DAUGHTER COMBINATION THAT ISN'T WORKING
> OUT. MOM WANTED DAUGHTER IN THE CLUB AND DAUGHTER WASN'T
> REALLY INTERSSTED . MOM NOW WANTS TO BUY OUT DAUGHTER, SO
> WE DON'T HAVE TO SELL STOCK TO PAY DAUGHTER OFF.
>
> HOW DO I DO THAT, AS THE FINANCIAL OFFICER?
>
>
>
>
>
>
>
>
>
>
>
>
Rev. Yvonne D. McCoy
Holistic Healing for the Mind, Body and Soul
Ph: 502.664.0373
Be transformed by the renewing of your mind! Rom. 12:2
-----Original Message-----
From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of Deannie
Rule
Sent: Saturday, October 16, 2010 2:25 AM
To: club_cafe@bivio.com
Subject: club_cafe: Re: MEMBER WANTS TO BUY OUT ANOTHER MEMBER
W/H Wietfeldt wrote:
> Please take me out of this group. Thank You Will Wietfeldt
>
> Will, I think you are free to come and go as you please. Don't need
permission.
thank you everyone. i believe i willl treat this as a
regular withdrawal , sans penalty fee, and a regular
member's (mom's) rather large contribution.
> I am curious , however, about how to transfer stock. i'll explore that .
deannie
>
>
> From: iras1 <iras1@aol.com>
> To: The Club Cafe <club_cafe@bivio.com>
> Sent: Fri, October 15, 2010 10:50:44 AM
> Subject: Re: club_cafe: MEMBER WANTS TO BUY OUT ANOTHER MEMBER
>
>
> You don't. You process the daughter's withdrawal as you normally would.
The mother makes an additional contribution of $x, where $x is the same
amount as you need to pay the daughter. The mother receives new units for
her contribution and the club issues a check to the daughter.
>
> As another option, the club can transfer appreciated stock to the
daughter. This benefits the club because the remaining members will defer
their share of the unrealized gain until they each withdraw from the club
and the daughter gets to choose when she sells the stock and realizes her
gain/loss from her membership in the club.
>
>
>
> Ira Smilovitz
> Join me at InvestEd 2011
> Investor Education at Its BestTM
> San Diego, CA May 13-15, 2011
> http://www.investor-education2011.org/
>
>
>
> In a message dated 10/15/10 10:38:00 Eastern Daylight Time,
mcrule@bivio.com writes:
>
> WE HAVE A MOTHER-DAUGHTER COMBINATION THAT ISN'T WORKING
> OUT. MOM WANTED DAUGHTER IN THE CLUB AND DAUGHTER WASN'T
> REALLY INTERSSTED . MOM NOW WANTS TO BUY OUT DAUGHTER, SO
> WE DON'T HAVE TO SELL STOCK TO PAY DAUGHTER OFF.
>
> HOW DO I DO THAT, AS THE FINANCIAL OFFICER?
>
>
>
>
>
>
>
>
>
>
>
>