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Transfer units from one spouse to another
Our club has a husband and wife who are separate members.
One spouse wants to transfer all units to the other spouse.
In effect this would be gifting the units. How would this be
done in club accounting?
Give bivio.com help a call, they can do the job but they will want to know for sure that is what the spouses really want to accomplish

Joe

On Nov 22, 2019, at 11:12 AM, Martha Rhode via bivio.com <user*17042300001@bivio.com> wrote:

Our club has a husband and wife who are separate members.
One spouse wants to transfer all units to the other spouse.
In effect this would be gifting the units. How would this be
done in club accounting?

I would think a full withdrawal of one spouse with equal number of shares purchased by second spouse. I don't believe you can transfer shares.

Bob
> On November 22, 2019 at 12:12 PM "Martha Rhode via bivio.com" <user*17042300001@bivio.com> wrote:
>
>
> Our club has a husband and wife who are separate members.
> One spouse wants to transfer all units to the other spouse.
> In effect this would be gifting the units. How would this be
> done in club accounting?

If you want to do a non-taxable gift transfer, this needs to be done by bivio support "behind the scenes".

Email us at support@bivio.com for more details.

Laurie Frederiksen
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www.bivio.com

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On Fri, Nov 22, 2019 at 12:37 PM Bob Mann via bivio.com <user*12614800001@bivio.com> wrote:
I would think a full withdrawal of one spouse with equal number of shares purchased by second spouse. I don't believe you can transfer shares.

Bob
> On November 22, 2019 at 12:12 PM "Martha Rhode via bivio.com" <user*17042300001@bivio.com> wrote:
>
>
> Our club has a husband and wife who are separate members.
> One spouse wants to transfer all units to the other spouse.
> In effect this would be gifting the units. How would this be
> done in club accounting?

I would not follow Bob Mann's advice.

I think you first need to determine if the club's partnership agreement and/or by-laws permit the gifting of a member's partnership interest. 

Assuming gifting is allowed, if the partnership interest is sold, it creates a tax consequence to the spouse leaving the partnership (i.e. an immediate capital gain).

I recommend contacting bivio as suggested earlier as they should be able to give you instructions on how to enter the gift in bivio.  Barring any gift tax ramificatons, if Spouse A gives the partnership interest to Spouse B, there is no immediate tax consequence. Spouse A's basis in the partnership interest becomes Spouse B's basis. A donee's basis is the same as the donor's basis. See IRS Publication 551 page 9. 

Martina


-----Original Message-----
From: Bob Mann via bivio.com <user*12614800001@bivio.com>
To: club_cafe <club_cafe@bivio.com>
Sent: Fri, Nov 22, 2019 9:37 am
Subject: Re: [club_cafe] Transfer units from one spouse to another

I would think a full withdrawal of one spouse with equal number of shares purchased by second spouse.  I don't believe you can transfer shares.

Bob

> On November 22, 2019 at 12:12 PM "Martha Rhode via bivio.com" <user*17042300001@bivio.com> wrote:
>
>
> Our club has a husband and wife who are separate members.
> One spouse wants to transfer all units to the other spouse.
> In effect this would be gifting the units. How would this be
> done in club accounting?
Thank you, Laurie. I read the earlier posts (some going back many years) and that was the advice then, too. I did not know if there was a way for the club treasurer to do this at the current time or if it required tweaking by Bivio support. I now have the answer. 

Martha Rhode for Grand Investment Partnership
On November 22, 2019 at 12:22 PM Laurie Frederiksen <laurie@bivio.biz> wrote:

If you want to do a non-taxable gift transfer,  this needs to be done by bivio support "behind the scenes".

Email us at support@bivio.com for more details.

Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend!  www.facebook.com/bivio
Follow us on twitter!  www.twitter.com/bivio
Follow Us on Google+

Click here to Subscribe to the Club Cafe email list.  Click here to  Unsubscribe


On Fri, Nov 22, 2019 at 12:37 PM Bob Mann via bivio.com <user* 12614800001@bivio.com> wrote:
I would think a full withdrawal of one spouse with equal number of shares purchased by second spouse.  I don't believe you can transfer shares.

Bob
> On November 22, 2019 at 12:12 PM "Martha Rhode via bivio.com" <user* 17042300001@bivio.com> wrote:
>
>
> Our club has a husband and wife who are separate members.
> One spouse wants to transfer all units to the other spouse.
> In effect this would be gifting the units. How would this be
> done in club accounting?


 
As a club treasurer, I would not advise any tax avoidance schemes. Just withdraw the member and have her pay the tax. Don't get your club into the middle of any questionable maneuvers.


On Fri, Nov 22, 2019 at 3:35 PM MARTHA RHODE via bivio.com <user*17042300001@bivio.com> wrote:
Thank you, Laurie. I read the earlier posts (some going back many years) and that was the advice then, too. I did not know if there was a way for the club treasurer to do this at the current time or if it required tweaking by Bivio support. I now have the answer.

Martha Rhode for Grand Investment Partnership
On November 22, 2019 at 12:22 PM Laurie Frederiksen <laurie@bivio.biz> wrote:

If you want to do a non-taxable gift transfer, this needs to be done by bivio support "behind the scenes".

Email us at support@bivio.com for more details.

Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend! www.facebook.com/bivio
Follow us on twitter! www.twitter.com/bivio
Follow Us on Google+

Click here to Subscribe to the Club Cafe email list. Click here to Unsubscribe


On Fri, Nov 22, 2019 at 12:37 PM Bob Mann via bivio.com <user* 12614800001@bivio.com> wrote:
I would think a full withdrawal of one spouse with equal number of shares purchased by second spouse. I don't believe you can transfer shares.

Bob
> On November 22, 2019 at 12:12 PM "Martha Rhode via bivio.com" <user* 17042300001@bivio.com> wrote:
>
>
> Our club has a husband and wife who are separate members.
> One spouse wants to transfer all units to the other spouse.
> In effect this would be gifting the units. How would this be
> done in club accounting?


I am also my club's treasurer and a retired IRS auditor. Gifting a partnership interest to a spouse is neither a "tax avoidance scheme" nor a "questionable maneuver" as purported by Margaret. It is, however, smart tax planning and entirely legal. Gifting a partnership interest does not avoid income tax, it just defers the payment of tax until the interest is sold. The donor spouse's basis in the partnership interest becomes the donee spouse's basis. I encourage Margaret and others to google IRS Publication 551 Basis of Assets and read page 9. Any CPA or tax accountant would advise gifting the member's partnership interest to his/her spouse as prudent tax planning. This process benefits the member and does not "get your club into the middle" of anything. 


-----Original Message-----rom: Margaret Wentworth via bivio.com <user*25964300001@bivio.com>
To: club_cafe <club_cafe@bivio.com>
Sent: Sat, Nov 23, 2019 6:59 am
Subject: Re: [club_cafe] Transfer units from one spouse to another

As a club treasurer, I would not advise any tax avoidance schemes. Just withdraw the member and have her pay the tax. Don't get your club into the middle of any questionable maneuvers.


On Fri, Nov 22, 2019 at 3:35 PM MARTHA RHODE via bivio.com <user*17042300001@bivio.com> wrote:
Thank you, Laurie. I read the earlier posts (some going back many years) and that was the advice then, too. I did not know if there was a way for the club treasurer to do this at the current time or if it required tweaking by Bivio support. I now have the answer. 

Martha Rhode for Grand Investment Partnership
On November 22, 2019 at 12:22 PM Laurie Frederiksen <laurie@bivio.biz> wrote:

If you want to do a non-taxable gift transfer,  this needs to be done by bivio support "behind the scenes".
Email us at support@bivio.com for more details.
Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend!  www.facebook.com/bivio
Follow us on twitter!  www.twitter.com/bivio
Follow Us on Google+

Click here to Subscribe to the Club Cafe email list.  Click here to  Unsubscribe

On Fri, Nov 22, 2019 at 12:37 PM Bob Mann via bivio.com <user* 12614800001@bivio.com> wrote:
I would think a full withdrawal of one spouse with equal number of shares purchased by second spouse.  I don't believe you can transfer shares.

Bob
> On November 22, 2019 at 12:12 PM "Martha Rhode via bivio.com" <user* 17042300001@bivio.com> wrote:
>
>
> Our club has a husband and wife who are separate members.
> One spouse wants to transfer all units to the other spouse.
> In effect this would be gifting the units. How would this be
> done in club accounting?


 
Martina,

Thank you for expanding the information about gifting units. There was no intent to avoid taxes as we understood that taxes would only be deferred. I will definitely check out your reference to Publication 551. 

Martha Rhode
On November 23, 2019 at 10:02 AM "MARTINA URQUIDES via bivio.com" <user*21844400001@bivio.com> wrote:

I am also my club's treasurer and a retired IRS auditor. Gifting a partnership interest to a spouse is neither a "tax avoidance scheme" nor a "questionable maneuver" as purported by Margaret. It is, however, smart tax planning and entirely legal. Gifting a partnership interest does not avoid income tax, it just defers the payment of tax until the interest is sold. The donor spouse's basis in the partnership interest becomes the donee spouse's basis. I encourage Margaret and others to google IRS Publication 551 Basis of Assets and read page 9. Any CPA or tax accountant would advise gifting the member's partnership interest to his/her spouse as prudent tax planning. This process benefits the member and does not "get your club into the middle" of anything. 


-----Original Message-----rom: Margaret Wentworth via bivio.com <user*25964300001@bivio.com>
To: club_cafe <club_cafe@bivio.com>
Sent: Sat, Nov 23, 2019 6:59 am
Subject: Re: [club_cafe] Transfer units from one spouse to another

As a club treasurer, I would not advise any tax avoidance schemes. Just withdraw the member and have her pay the tax. Don't get your club into the middle of any questionable maneuvers.


On Fri, Nov 22, 2019 at 3:35 PM MARTHA RHODE via bivio.com <user* 17042300001@bivio.com> wrote:
Thank you, Laurie. I read the earlier posts (some going back many years) and that was the advice then, too. I did not know if there was a way for the club treasurer to do this at the current time or if it required tweaking by Bivio support. I now have the answer. 

Martha Rhode for Grand Investment Partnership
On November 22, 2019 at 12:22 PM Laurie Frederiksen < laurie@bivio.biz> wrote:

If you want to do a non-taxable gift transfer,  this needs to be done by bivio support "behind the scenes".
Email us at support@bivio.com for more details.
Laurie Frederiksen
Invest with your friends!
www.bivio.com

Become our Facebook friend!   www.facebook.com/bivio
Follow us on twitter!   www.twitter.com/bivio
Follow Us on Google+

Click here to  Subscribe to the Club Cafe email list.  Click here to   Unsubscribe

On Fri, Nov 22, 2019 at 12:37 PM Bob Mann via bivio.com <user* 12614800001@bivio.com> wrote:
I would think a full withdrawal of one spouse with equal number of shares purchased by second spouse.  I don't believe you can transfer shares.

Bob
> On November 22, 2019 at 12:12 PM "Martha Rhode via bivio.com" <user* 17042300001@bivio.com> wrote:
>
>
> Our club has a husband and wife who are separate members.
> One spouse wants to transfer all units to the other spouse.
> In effect this would be gifting the units. How would this be
> done in club accounting?