My club of almost 24 years recently disbanded and the
remaining 4 partners (including me) took our full
withdrawals in stock. I have been the Club Treasurer since
we formed it. Can someone please point me to where I can
get some information concerning how and when to step up each
the cost basis of the stock lots I received from the Club's
cost basis to my Partnership cost basis. If it helps, both
the Investment Club account was, and my personal account is,
at Fidelity. I have not yet sold any of the stock I
received, and the cost basis Fidelity is showing is the
Club's cost basis. Thanks so much!
Lynda Feit on
Thatâs because when you transfer stock there is no step-up in cost basis.
Sent from my iPhone
> On Mar 10, 2025, at 7:37â¯PM, Carole L. Jansen via bivio.com <user*8441200001@bivio.com> wrote:
>
> My club of almost 24 years recently disbanded and the
> remaining 4 partners (including me) took our full
> withdrawals in stock. I have been the Club Treasurer since
> we formed it. Can someone please point me to where I can
> get some information concerning how and when to step up each
> the cost basis of the stock lots I received from the Club's
> cost basis to my Partnership cost basis. If it helps, both
> the Investment Club account was, and my personal account is,
> at Fidelity. I have not yet sold any of the stock I
> received, and the cost basis Fidelity is showing is the
> Club's cost basis. Thanks so much!
Tracy, Molly M on
The withdrawal forms in Bivio provide the information on a departing members cost basis for stock received.
Sent from my iPhone
> On Mar 10, 2025, at 9:36â¯PM, Carole L. Jansen via bivio.com <user*8441200001@bivio.com> wrote:
>
> My club of almost 24 years recently disbanded and the
> remaining 4 partners (including me) took our full
> withdrawals in stock. I have been the Club Treasurer since
> we formed it. Can someone please point me to where I can
> get some information concerning how and when to step up each
> the cost basis of the stock lots I received from the Club's
> cost basis to my Partnership cost basis. If it helps, both
> the Investment Club account was, and my personal account is,
> at Fidelity. I have not yet sold any of the stock I
> received, and the cost basis Fidelity is showing is the
> Club's cost basis. Thanks so much!
ira smilovitz on
The change in cost basis (it's not necessarily a step up) is shown on your withdrawal report. Not all brokers will adjust the cost basis when the stock is transferred from a partnership to a member. You need to keep the withdrawal report as your documentation of the actual cost basis in your hands. There is a procedure for adjusting the cost basis on a tax return when the broker reported basis is different from the actual cost basis.
My club of almost 24 years recently disbanded and the
remaining 4 partners (including me) took our full
withdrawals in stock. I have been the Club Treasurer since
we formed it. Can someone please point me to where I can
get some information concerning how and when to step up each
the cost basis of the stock lots I received from the Club's
cost basis to my Partnership cost basis. If it helps, both
the Investment Club account was, and my personal account is,
at Fidelity. I have not yet sold any of the stock I
received, and the cost basis Fidelity is showing is the
Club's cost basis. Thanks so much!
Carole Jansen on
Thanks Ira, the last sentence is what I needed. Thankfully, in my case, it is all a step up.
The change in cost basis (it's not necessarily a step up) is shown on your withdrawal report. Not all brokers will adjust the cost basis when the stock is transferred from a partnership to a member. You need to keep the withdrawal report as your documentation of the actual cost basis in your hands. There is a procedure for adjusting the cost basis on a tax return when the broker reported basis is different from the actual cost basis.
My club of almost 24 years recently disbanded and the
remaining 4 partners (including me) took our full
withdrawals in stock. I have been the Club Treasurer since
we formed it. Can someone please point me to where I can
get some information concerning how and when to step up each
the cost basis of the stock lots I received from the Club's
cost basis to my Partnership cost basis. If it helps, both
the Investment Club account was, and my personal account is,
at Fidelity. I have not yet sold any of the stock I
received, and the cost basis Fidelity is showing is the
Club's cost basis. Thanks so much!
Carole Jansen on
Thanks Tracy, I understand that part. I was looking for info on how to change it, either with my broker now or when I sell the stock. I think Ira has pointed me in the right direction.
The withdrawal forms in Bivio provide the information on a departing members cost basis for stock received.
Sent from my iPhone
> On Mar 10, 2025, at 9:36â¯PM, Carole L. Jansen via bivio.com <user*8441200001@bivio.com> wrote:
>
> My club of almost 24 years recently disbanded and the
> remaining 4 partners (including me) took our full
> withdrawals in stock. I have been the Club Treasurer since
> we formed it. Can someone please point me to where I can
> get some information concerning how and when to step up each
> the cost basis of the stock lots I received from the Club's
> cost basis to my Partnership cost basis. If it helps, both
> the Investment Club account was, and my personal account is,
> at Fidelity. I have not yet sold any of the stock I
> received, and the cost basis Fidelity is showing is the
> Club's cost basis. Thanks so much!
That's because when you transfer stock there is no step-up in cost basis.
Sent from my iPhone
> On Mar 10, 2025, at 7:37â¯PM, Carole L. Jansen via bivio.com <user*8441200001@bivio.com> wrote:
>
> My club of almost 24 years recently disbanded and the
> remaining 4 partners (including me) took our full
> withdrawals in stock. I have been the Club Treasurer since
> we formed it. Can someone please point me to where I can
> get some information concerning how and when to step up each
> the cost basis of the stock lots I received from the Club's
> cost basis to my Partnership cost basis. If it helps, both
> the Investment Club account was, and my personal account is,
> at Fidelity. I have not yet sold any of the stock I
> received, and the cost basis Fidelity is showing is the
> Club's cost basis. Thanks so much!
Ruthy Sellers on
IRA--PLEASE HELP! I WAS ONCE A MEMBER OF CLUB_CAFE@BIVIO SEVERAL YEARS AGO (LAST FILED A CLUB RETURN IN 2021?) BUT THE CLUB I WAS A MEMBER OF WITHDREW (AUTUMN CHASE WOMEN'S INVESTMENT CLUB) AND SO DID I. HOWEVER I FAILED TO DELETE MY MEMBERSHIP FROM RECEIVING THE EMAILS. PLEASE DO SO FOR ME. I DO NOT REMEMBER HOW TO DO SO. PLEASE HELP! THANK YOU.
The change in cost basis (it's not necessarily a step up) is shown on your withdrawal report. Not all brokers will adjust the cost basis when the stock is transferred from a partnership to a member. You need to keep the withdrawal report as your documentation of the actual cost basis in your hands. There is a procedure for adjusting the cost basis on a tax return when the broker reported basis is different from the actual cost basis.
My club of almost 24 years recently disbanded and the
remaining 4 partners (including me) took our full
withdrawals in stock. I have been the Club Treasurer since
we formed it. Can someone please point me to where I can
get some information concerning how and when to step up each
the cost basis of the stock lots I received from the Club's
cost basis to my Partnership cost basis. If it helps, both
the Investment Club account was, and my personal account is,
at Fidelity. I have not yet sold any of the stock I
received, and the cost basis Fidelity is showing is the
Club's cost basis. Thanks so much!
Rebecca Kruse on
We've removed Ruthy's email address from the Club Cafe' mailing list. There's also a link that Club Cafe' members can use to unsubscribe:
IRA--PLEASE HELP! I WAS ONCE A MEMBER OF CLUB_CAFE@BIVIO SEVERAL YEARS AGO (LAST FILED A CLUB RETURN IN 2021?) BUT THE CLUB I WAS A MEMBER OF WITHDREW (AUTUMN CHASE WOMEN'S INVESTMENT CLUB) AND SO DID I. HOWEVER I FAILED TO DELETE MY MEMBERSHIP FROM RECEIVING THE EMAILS. PLEASE DO SO FOR ME. I DO NOT REMEMBER HOW TO DO SO. PLEASE HELP! THANK YOU.
The change in cost basis (it's not necessarily a step up) is shown on your withdrawal report. Not all brokers will adjust the cost basis when the stock is transferred from a partnership to a member. You need to keep the withdrawal report as your documentation of the actual cost basis in your hands. There is a procedure for adjusting the cost basis on a tax return when the broker reported basis is different from the actual cost basis.
My club of almost 24 years recently disbanded and the
remaining 4 partners (including me) took our full
withdrawals in stock. I have been the Club Treasurer since
we formed it. Can someone please point me to where I can
get some information concerning how and when to step up each
the cost basis of the stock lots I received from the Club's
cost basis to my Partnership cost basis. If it helps, both
the Investment Club account was, and my personal account is,
at Fidelity. I have not yet sold any of the stock I
received, and the cost basis Fidelity is showing is the
Club's cost basis. Thanks so much!
John Quensen on
Our club is in the process of disbanding. We previously had
our account at TD Ameritrade and last year switched to
Fidelity before our account would be transitioned to Schwab
because we understood that Schwab would not allow stock
transfers to withdrawing members. Now I am having difficulty
convincing Fidelity that the cost basis needs to be adjusted
when we transfer stocks to members. I never had this problem
with TD Ameritrade. Has anyone else had this problem with
Fidelity? Is it just the individual(s) I speak with? I seem
to get different answers from different people.
Carole Jansen on
It is my understanding that the basis is not adjusted to the partner's basis until they sell the stock. Check out the new IRS Form 7217 that needs to be filed with a former partner's return if they sold any of the transfered final withdrawal stock in the tax year being reported. I'm not an tax expert but I did sell some of my withdrawn stock last year and I will have to print and mail my personal return in because that form is so new and none of the online e-filing software handles it.
Our club is in the process of disbanding. We previously had
our account at TD Ameritrade and last year switched to
Fidelity before our account would be transitioned to Schwab
because we understood that Schwab would not allow stock
transfers to withdrawing members. Now I am having difficulty
convincing Fidelity that the cost basis needs to be adjusted
when we transfer stocks to members. I never had this problem
with TD Ameritrade. Has anyone else had this problem with
Fidelity? Is it just the individual(s) I speak with? I seem
to get different answers from different people.
Tracy, Molly M on
I agree, we gave the adjusted cost information from the bivio withdrawal reports to each departing partner to handle with their individual broker/tax advisor at the time they sold the stock, as each partner's basis was unique.
From: club_cafe@bivio.com <club_cafe@bivio.com> on behalf of Carole Jansen via bivio.com <user*8441200001@bivio.com> Sent: Thursday, March 13, 2025 12:44 PM To: club_cafe@bivio.com <club_cafe@bivio.com> Subject: Re: [club_cafe] Re: Step up in cost basis
It is my understanding that the basis is not adjusted to the partner's basis until they sell the stock. Check out the new IRS Form 7217 that needs to be filed with a former partner's return if they sold any of the transfered final withdrawal stock
in the tax year being reported. I'm not an tax expert but I did sell some of my withdrawn stock last year and I will have to print and mail my personal return in because that form is so new and none of the online e-filing software handles it.
Our club is in the process of disbanding. We previously had
our account at TD Ameritrade and last year switched to
Fidelity before our account would be transitioned to Schwab
because we understood that Schwab would not allow stock
transfers to withdrawing members. Now I am having difficulty
convincing Fidelity that the cost basis needs to be adjusted
when we transfer stocks to members. I never had this problem
with TD Ameritrade. Has anyone else had this problem with
Fidelity? Is it just the individual(s) I speak with? I seem
to get different answers from different people.
ira smilovitz on
Carole,
Part of your understanding is backwards. The cost basis is adjusted upon receipt of the shares, not the sale. Form 7217 needs to be attached to the return for the year the shares are received, not sold. Unfortunately, the form is so new (December 2024) that even professional tax software doesn't include it yet (at least mine doesn't). We professionals do have an advantage. We can attach pdfs to our electronic submissions. I don't know if consumer grade tax software has the same capabilities.
In simple terms, Form 7217 provides the IRS with a copy of your withdrawal report(s), presented in a format that the IRS can use.
It is my understanding that the basis is not adjusted to the partner's basis until they sell the stock. Check out the new IRS Form 7217 that needs to be filed with a former partner's return if they sold any of the transfered final withdrawal stock in the tax year being reported. I'm not an tax expert but I did sell some of my withdrawn stock last year and I will have to print and mail my personal return in because that form is so new and none of the online e-filing software handles it.
Our club is in the process of disbanding. We previously had
our account at TD Ameritrade and last year switched to
Fidelity before our account would be transitioned to Schwab
because we understood that Schwab would not allow stock
transfers to withdrawing members. Now I am having difficulty
convincing Fidelity that the cost basis needs to be adjusted
when we transfer stocks to members. I never had this problem
with TD Ameritrade. Has anyone else had this problem with
Fidelity? Is it just the individual(s) I speak with? I seem
to get different answers from different people.
Carole Jansen on
Ira, of course you are absolutely right about reporting the shares received on the new form. My morning brain hadn't quite kicked in when I wrote that. The Bivio software makes it a piece of reporting cake.
Part of your understanding is backwards. The cost basis is adjusted upon receipt of the shares, not the sale. Form 7217 needs to be attached to the return for the year the shares are received, not sold. Unfortunately, the form is so new (December 2024) that even professional tax software doesn't include it yet (at least mine doesn't). We professionals do have an advantage. We can attach pdfs to our electronic submissions. I don't know if consumer grade tax software has the same capabilities.
In simple terms, Form 7217 provides the IRS with a copy of your withdrawal report(s), presented in a format that the IRS can use.
It is my understanding that the basis is not adjusted to the partner's basis until they sell the stock. Check out the new IRS Form 7217 that needs to be filed with a former partner's return if they sold any of the transfered final withdrawal stock in the tax year being reported. I'm not an tax expert but I did sell some of my withdrawn stock last year and I will have to print and mail my personal return in because that form is so new and none of the online e-filing software handles it.
Our club is in the process of disbanding. We previously had
our account at TD Ameritrade and last year switched to
Fidelity before our account would be transitioned to Schwab
because we understood that Schwab would not allow stock
transfers to withdrawing members. Now I am having difficulty
convincing Fidelity that the cost basis needs to be adjusted
when we transfer stocks to members. I never had this problem
with TD Ameritrade. Has anyone else had this problem with
Fidelity? Is it just the individual(s) I speak with? I seem
to get different answers from different people.
Part of your understanding is backwards. The cost basis is adjusted upon receipt of the shares, not the sale. Form 7217 needs to be attached to the return for the year the shares are received, not sold. Unfortunately, the form is so new (December 2024) that even professional tax software doesn't include it yet (at least mine doesn't). We professionals do have an advantage. We can attach pdfs to our electronic submissions. I don't know if consumer grade tax software has the same capabilities.
In simple terms, Form 7217 provides the IRS with a copy of your withdrawal report(s), presented in a format that the IRS can use.
It is my understanding that the basis is not adjusted to the partner's basis until they sell the stock. Check out the new IRS Form 7217 that needs to be filed with a former partner's return if they sold any of the transfered final withdrawal stock in the tax year being reported. I'm not an tax expert but I did sell some of my withdrawn stock last year and I will have to print and mail my personal return in because that form is so new and none of the online e-filing software handles it.
Our club is in the process of disbanding. We previously had
our account at TD Ameritrade and last year switched to
Fidelity before our account would be transitioned to Schwab
because we understood that Schwab would not allow stock
transfers to withdrawing members. Now I am having difficulty
convincing Fidelity that the cost basis needs to be adjusted
when we transfer stocks to members. I never had this problem
with TD Ameritrade. Has anyone else had this problem with
Fidelity? Is it just the individual(s) I speak with? I seem
to get different answers from different people.