Tax repercussions for departing member paid with stock
Chris Dempsey on
When a member withdrawls from the club and is paid out with
stock(s), what are tax repercussions? Is it that once the
departing member cashes out the stock, they pay 100% of the
gain, or only their portion? Or are the active club members
responsible for their portion of the gain? Also, do active
members have to pay tax, only at the time they leave the
club?
Robert Shaw on
I believe this is correct.
On a partial withdrawal the member’s basis is the club's basis per the IRS.
For a full WD the basis then is the member’s basis.
Also, do not transfer anything until the withdrawal paperwork is completed and correct.
If you are unsure of what you are doing ask bivio - it could well save you money to do so.
Bob Shaw
> On Sep 7, 2026, at 3:56 PM, Chris Dempsey via bivio.com <user*26042100001@bivio.com> wrote:
>
> When a member withdrawls from the club and is paid out with
> stock(s), what are tax repercussions? Is it that once the
> departing member cashes out the stock, they pay 100% of the
> gain, or only their portion? Or are the active club members
> responsible for their portion of the gain? Also, do active
> members have to pay tax, only at the time they leave the
> club?
sgarciat2 on
I’m not sure if the answer to that Chris I’m so sorry but I do wonder if anyone has been told by Schwab that you can only transfer stock from a club into another club account?
Sent from my iPhone
> On Sep 7, 2026, at 2:57 PM, Chris Dempsey via bivio.com <user*26042100001@bivio.com> wrote:
>
> When a member withdrawls from the club and is paid out with
> stock(s), what are tax repercussions? Is it that once the
> departing member cashes out the stock, they pay 100% of the
> gain, or only their portion? Or are the active club members
> responsible for their portion of the gain? Also, do active
> members have to pay tax, only at the time they leave the
> club?
Dana Lee on
Thank you for this thread. I am surprisingly in this exact situation and grateful for any and all info.
I'm not sure if the answer to that Chris I'm so sorry but I do wonder if anyone has been told by Schwab that you can only transfer stock from a club into another club account?
Sent from my iPhone
> On Sep 7, 2026, at 2:57 PM, Chris Dempsey via bivio.com <user*26042100001@bivio.com> wrote:
>
> When a member withdrawls from the club and is paid out with
> stock(s), what are tax repercussions? Is it that once the
> departing member cashes out the stock, they pay 100% of the
> gain, or only their portion? Or are the active club members
> responsible for their portion of the gain? Also, do active
> members have to pay tax, only at the time they leave the
> club?
Tracy, Molly M on
Yes; Schwab will only transfer stock to an account with the identical name as your club account at Schwab. Our club transferred our entire portfolio from Schwab to Fidelity, no problem, and Fidelity then helped us transfer stocks to the accounts of individual
departing club members.
Sent from my iPhone
On Sep 7, 2026, at 4:56 PM, Dana Lee via bivio.com <user*24484300001@bivio.com> wrote:
Thank you for this thread. I am surprisingly in this exact situation and grateful for any and all info.
I'm not sure if the answer to that Chris I'm so sorry but I do wonder if anyone has been told by Schwab that you can only transfer stock from a club into another club account?
Sent from my iPhone
> On Sep 7, 2026, at 2:57 PM, Chris Dempsey via
bivio.com <user*26042100001@bivio.com> wrote:
>
> When a member withdrawls from the club and is paid out with
> stock(s), what are tax repercussions? Is it that once the
> departing member cashes out the stock, they pay 100% of the
> gain, or only their portion? Or are the active club members
> responsible for their portion of the gain? Also, do active
> members have to pay tax, only at the time they leave the
> club?
Donna OConnnell on
We can transfer stocks from a Schwab club account to individual accounts. I am in California
Yes; Schwab will only transfer stock to an account with the identical name as your club account at Schwab. Our club transferred our entire portfolio from Schwab to Fidelity, no problem, and Fidelity then helped us transfer stocks to the accounts of individual
departing club members.
I'm not sure if the answer to that Chris I'm so sorry but I do wonder if anyone has been told by Schwab that you can only transfer stock from a club into another club account?
Sent from my iPhone
> On Sep 7, 2026, at 2:57 PM, Chris Dempsey via
bivio.com <user*26042100001@bivio.com> wrote:
>
> When a member withdrawls from the club and is paid out with
> stock(s), what are tax repercussions? Is it that once the
> departing member cashes out the stock, they pay 100% of the
> gain, or only their portion? Or are the active club members
> responsible for their portion of the gain? Also, do active
> members have to pay tax, only at the time they leave the
> club?
--
Donna O'Connell
Colleen Goings on
Same here we could not transfer stocks from Schwab to a departing club member with a Schwab account. We switched to Fidelity and made the transfers.
Yes; Schwab will only transfer stock to an account with the identical name as your club account at Schwab. Our club transferred our entire portfolio from Schwab to Fidelity, no problem, and Fidelity then helped us transfer stocks to the accounts of individual
departing club members.
I'm not sure if the answer to that Chris I'm so sorry but I do wonder if anyone has been told by Schwab that you can only transfer stock from a club into another club account?
Sent from my iPhone
> On Sep 7, 2026, at 2:57 PM, Chris Dempsey via
bivio.com <user*26042100001@bivio.com> wrote:
>
> When a member withdrawls from the club and is paid out with
> stock(s), what are tax repercussions? Is it that once the
> departing member cashes out the stock, they pay 100% of the
> gain, or only their portion? Or are the active club members
> responsible for their portion of the gain? Also, do active
> members have to pay tax, only at the time they leave the
> club?
sgarciat2 on
Amazing. Thank you so much ladies.
Sent from my iPhone
> On Sep 7, 2026, at 3:55 PM, Robert Shaw via bivio.com <user*27509400001@bivio.com> wrote:
>
> I believe this is correct.
>
> On a partial withdrawal the member’s basis is the club's basis per the IRS.
> For a full WD the basis then is the member’s basis.
>
> Also, do not transfer anything until the withdrawal paperwork is completed and correct.
> If you are unsure of what you are doing ask bivio - it could well save you money to do so.
>
> Bob Shaw
>
>> On Sep 7, 2026, at 3:56 PM, Chris Dempsey via bivio.com <user*26042100001@bivio.com> wrote:
>>
>> When a member withdrawls from the club and is paid out with
>> stock(s), what are tax repercussions? Is it that once the
>> departing member cashes out the stock, they pay 100% of the
>> gain, or only their portion? Or are the active club members
>> responsible for their portion of the gain? Also, do active
>> members have to pay tax, only at the time they leave the
>> club?
>
Tracy, Molly M on
Unless your club has successfully made these transfers in the past, it's not worth the frustration to attempt with Schwab.
Sent from my iPhone
On Sep 7, 2026, at 6:36 PM, Donna OConnnell via bivio.com <user*23240500001@bivio.com> wrote:
We can transfer stocks from a Schwab club account to individual accounts. I am in California
Yes; Schwab will only transfer stock to an account with the identical name as your club account at Schwab. Our club transferred our entire portfolio from Schwab to Fidelity, no problem, and Fidelity then helped us transfer stocks to the accounts
of individual departing club members.
I'm not sure if the answer to that Chris I'm so sorry but I do wonder if anyone has been told by Schwab that you can only transfer stock from a club into another club account?
Sent from my iPhone
> On Sep 7, 2026, at 2:57 PM, Chris Dempsey via
bivio.com <user*26042100001@bivio.com> wrote:
>
> When a member withdrawls from the club and is paid out with
> stock(s), what are tax repercussions? Is it that once the
> departing member cashes out the stock, they pay 100% of the
> gain, or only their portion? Or are the active club members
> responsible for their portion of the gain? Also, do active
> members have to pay tax, only at the time they leave the
> club?
--
Donna O'Connell
ira smilovitz on
This thread has moved far away from the initial quastion.
If a member makes a full withdrawal from the club and receives stock as part of the withdrawal payment, when the stock is sold that member only pays tax on the capital gain associated with his/her ownership share in the club. The remaining capital gain (that is, the difference between the withdrawal value and the club's cost basis in the transferred shares) is locked away in each continuing member's value. The remaining members will be taxed on their share of the unrealized gains when each member withdraws from the club.
The separate issue of transfers at Schwab has been well documented for several years now. Some clubs seem to have been grandfathered in and can transfer cash and stock freely. Others have been told that Schwab will only transer cash and securities to an account that is titled exactly the same as the originating Schwab account.
To date, I have not been able to find anyone at Schwab that can explain the discrepancy nor who will do anything to change the situation for clubs that are restricted.
Yes; Schwab will only transfer stock to an account with the identical name as your club account at Schwab. Our club transferred our entire portfolio from Schwab to Fidelity, no problem, and Fidelity then helped us transfer stocks to the accounts
of individual departing club members.
I'm not sure if the answer to that Chris I'm so sorry but I do wonder if anyone has been told by Schwab that you can only transfer stock from a club into another club account?
Sent from my iPhone
> On Sep 7, 2026, at 2:57 PM, Chris Dempsey via
bivio.com <user*26042100001@bivio.com> wrote:
>
> When a member withdrawls from the club and is paid out with
> stock(s), what are tax repercussions? Is it that once the
> departing member cashes out the stock, they pay 100% of the
> gain, or only their portion? Or are the active club members
> responsible for their portion of the gain? Also, do active
> members have to pay tax, only at the time they leave the
> club?