Note that your operations will not be closed until your final transaction is completed. This includes the receipt of any dividends. If you wait to sell stock until the end of this calendar year, you may have income from dividends in 2015 so your club operations could not be finalized until then. That would mean you'd have both 2014 and partial year 2015 taxes to do.
Trying to disband right around a year end often brings in extra complications because you are crossing tax years. It may be cleaner if you can either finish things up completely this year or wait until next year to wind things up.
Laurie Frederiksen Invest with your friends! www.bivio.com
Our club will be disbanding at the end of the year. Is it better to sell our stocks at the end of the year? We live in Florida. I'd like to do this as painless as possible. I'm looking into DRIPs for myself.
Gloria Graham on
I'm sorry too. Thanks for the info.
On Nov 18, 2014 8:58 AM, "Laurie Frederiksen" <laurie@bivio.biz> wrote:
Dear Gloria,
We are sorry to hear your club is disbanding. Here are the instructions you need to follow to close it down correctly:
Note that your operations will not be closed until your final transaction is completed. This includes the receipt of any dividends. If you wait to sell stock until the end of this calendar year, you may have income from dividends in 2015 so your club operations could not be finalized until then. That would mean you'd have both 2014 and partial year 2015 taxes to do.
Trying to disband right around a year end often brings in extra complications because you are crossing tax years. It may be cleaner if you can either finish things up completely this year or wait until next year to wind things up.
Laurie Frederiksen Invest with your friends! www.bivio.com
Our club will be disbanding at the end of the year. Is it better to sell our stocks at the end of the year? We live in Florida. I'd like to do this as painless as possible. I'm looking into DRIPs for myself.
Nicholas Picini on
Hi,
The club I'm in is also disbanding. We've been following the
guidelines provided and they are been very helpful.
A couple of specific questions:
1. For the NJ Tax return, I note that there is a place to
mark it as a Final Return. Is there any other required
action to notify the state of the dissolution of the
partnership? Where may I find that information?
2. Last year we filed a NY Tax return as one of the partners
had lived in NY for part of the year, prior to moving back
to NJ. Do we need to file a NY Tax return for this year if
none of the partners resided in the state?
Thanks for all your help throughout the years.
Regards,
Nick
ira smilovitz on
Nick,
The club might have to complete Schedule L on the final NJ-1065. When you are ready to prepare the return, drop a line to support@bivio.com and we'll take a look at your club's data to determine if Schedule L is needed.
You only need to file a NY IT-204 if the club is based in NY or if any of the members are NY residents. If your ex-NY partner terminated his/her NY residency before 1/1/14, then no NY return is required.
The club I'm in is also disbanding. We've been following the
guidelines provided and they are been very helpful.
A couple of specific questions:
1. For the NJ Tax return, I note that there is a place to
mark it as a Final Return. Is there any other required
action to notify the state of the dissolution of the
partnership? Where may I find that information?
2. Last year we filed a NY Tax return as one of the partners
had lived in NY for part of the year, prior to moving back
to NJ. Do we need to file a NY Tax return for this year if
none of the partners resided in the state?