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Establishing a club Valuation Date
A reader recently asked I am in the process of starting up an Investment club. My question is if we have our monthly meeting on the 20th of the month, do we set the Valuation date for the 1st of the month or the last ...
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Investing as a Family Business
A reader recently asked Can you offer a suggestion for structuring/formation of my family's investing activites. We want to invest our money, but are not sure of what is available to us. Can we form an investment club for our family, (at least initially), FLP, ...
1 message
Division of shares, profits, and loss in an investment club
Rip and I, the Trez_Talk guys, were recently asked I have about ten friends and we are interested in starting an investment club. I have dabbled in funds for quite some time now and my group wants me to be the president of the club. ...
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Beneficiaries in Investment Clubs
A reader asks Would you have any information with regard to how beneficiaries of investment club members are treated, i.e. how they are addressed in the Bylaws? The treatment of beneficiaries in an investment club has gone through many gyrations. When the NCA software first ...
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Handling a late payor and associated unit values
Dieter Louis wrote, We have an individual who is often two weeks late. The partnership wants me to reduce his units for the amount of the late period per our agreement. When I use the "two weeks late date," the valuation still calculates the same ...
4 messages
Questions about partnership agreements
Brad asked several great questions about some rather standard paragraphs found in many investment partnership agreements. "Any corporation or transfer agent called upon to transfer any securities to or from the name of the partnership shall be entitled to rely on instructions or assignments signed ...
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Partnership Agreements- The treasurers' perspective (Accounts)
Jerry, I'm the treasurer of a new club and we are in the process of writing our partnership agreement. Specifically, as treasurer, what issues should I be most concerned with? Let's finish our discussion of the treasurers' perspective of the partnership agreement by highlighting several ...
4 messages
Member fees vs. club startup expenses
Norm Osterman wrote Being we are starting investment club #2 I am wondering if the correct procedure is to place an assessment fee on the members for startup costs. I did this prior with our other club but it might be better to use the ...
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Ford Recapitalization - Part Cash Option
This is part of a continuing series on mergers, spin-offs, and stock splits. In early August of 2000, Ford Motor Company completed a recapitalization/merger plan. Under this plan, a shareholder could exchange stock for 1.748 shares of new Ford stock, or could receive 1 new ...
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Ford Recapitalization - All Stock Option
This is part of a continuing series on mergers, spin-offs, and stock splits. In early August of 2000, Ford Motor Company completed a recapitalization/merger plan. Under this plan, a shareholder could exchange stock for 1.748 shares of new Ford stock, or could receive 1 new ...
1 message
To Incorporate Or Not Incorporate
George Fernett wrote Lately, we have been hearing that we should "incorporate" our club, to protect each individual from any problems (lawsuits, etc) that might occur for whatever reason. Most clubs form as partnerships since the potential risk of liability is very small. Unless a ...
4 messages
Ford/Visteon Spin Off
This is part of a continuing series on entering Spin Offs and Mergers in bivio and NCA. Ford Motor Company [F] spun off Visteon [VC] as of 6/28/00. Shareholder were to receive .130933 Visteon shares for each Ford share held. The tax basis for the ...
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Does an investment club have to file a partnership return
A frequent question is about the need to file a partnership return, Form 1065. Rip, you are always recommending that investment clubs file a partnership return. Isn't there an exception that says an investing partnership can elect not to do this. If so, wouldn't the ...
5 messages
Do we have to file if we are just starting and have no stock purchases?
This question is often asked Our club just started in November. We have not bought any stocks yet. Do we still have to file a partnership income tax return. It depends on whether you mean 'have to' or 'should'. The instructions for the federal partnership ...
3 messages
Tax distributions (allocations) in a general partnership?
Jamie wrote My club is formed as a general partnership. Our members, however, do not invest the same amounts every month, so there are some wide gaps in ownership percentages. I have recently read that in a general partnership, taxes will be divided equally among ...
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