Double check the disbanding rules with IRS. I thought there was a new rule about needing to file a return within so many days after disbanding.
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From: "John Rice via bivio.com" <firstname.lastname@example.org>
Subject: [club_cafe] disbanding
Date: Mon, Jul 30, 2018 4:38 PM
Why are you going to sell all of your stocks? Why don't you just split up the stocks and cash and then let the members decide on whether to take the capital gains/losses this year or in a later year? You can disband earlier this year also. John On Mon, Jul 2, 2018 at 7:02 PM, Allen Clark via bivio.com < email@example.com> wrote: > Sorry, I think you asked the question in the wrong forum as I did earlier. > > On Monday, July 2, 2018, 7:45:56 PM EDT, Robert Butz via bivio.com <user* > firstname.lastname@example.org> wrote: > > > We are thinking of disbanding this year I am thinking of > doing it in Nov or early Dec. Convert every thing to cash > and distribute at end of year. Problem our membership in > BIVIO is up in Nov. Is there a prorated membership to get > the tax forms done in BIVIO for 2018? > > Bob Butz > Sell Them High Investment Club >
The tax return is due 3 and a half months after you disband, but if you do it early in the year you use the current year form and it is not necessary to wait for the return form for 2019. Be careful with dividends, it they show up after you have filed, then you might need to redo something.
The final return is due two and a half months after dissolution (not three and a half). While you can use the prior year forms, you must prepare the return according to the current tax laws. While bivio has done its best to anticipate changes to the reporting requirements, there are still some unknowns - such as how income from REITs will be reported or the format for opting-out of the Centralized Partnership Audit Regime (if your club qualifies to do so). If you have any questions about disbanding your club, you should send them to email@example.com. I would also consider filing for an automatic six-month extension using Form 7004. This would push your due date well-past the release of the 2018 tax forms.