Partial Versus Full Stock Withdrawals

I'll continue the discussion of stock withdrawals here.

As Jack mentioned, transferring stock in partial withdrawals is not recommended. The tax rules are different than they are for transfers in full withdrawals where such transfers can provide positive tax benefits.

However, all stock transfers are complex and have many moving parts. They are not something to rush into and should never be done without first filling in the withdrawal form in bivio.

That will produce a report which will show how much cash a member is also owed and the exact lots and cost basis of the lots the member will receive. That information is what should be used to tell the broker exactly what to transfer.

Do not use other information and then try and fill out a withdrawal report.

These links take you to oldie but goodie posts which discuss stock withdrawals and their impact both on the withdrawing member and on the club for the two different types of withdrawals:

Partial Withdrawals

Full Withdrawals

Laurie Frederiksen
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