This is part of a continuing series on mergers, spin-offs, and stock splits. In early August of 2000, Ford Motor Company completed a recapitalization/merger plan. Under this plan, a shareholder could exchange stock for 1.748 shares of new Ford stock, or could receive 1 new ...
George Fernett wrote Lately, we have been hearing that we should "incorporate" our club, to protect each individual from any problems (lawsuits, etc) that might occur for whatever reason. Most clubs form as partnerships since the potential risk of liability is very small. Unless a ...
This is part of a continuing series on entering Spin Offs and Mergers in bivio and NCA. Ford Motor Company [F] spun off Visteon [VC] as of 6/28/00. Shareholder were to receive .130933 Visteon shares for each Ford share held. The tax basis for the ...
A frequent question is about the need to file a partnership return, Form 1065. Rip, you are always recommending that investment clubs file a partnership return. Isn't there an exception that says an investing partnership can elect not to do this. If so, wouldn't the ...
This question is often asked Our club just started in November. We have not bought any stocks yet. Do we still have to file a partnership income tax return. It depends on whether you mean 'have to' or 'should'. The instructions for the federal partnership ...
Jamie wrote My club is formed as a general partnership. Our members, however, do not invest the same amounts every month, so there are some wide gaps in ownership percentages. I have recently read that in a general partnership, taxes will be divided equally among ...
Recently Tim K. Kessler asked Our club's by-laws allow the transfer of securities to a withdrawing member. However, most of our members do not have brokerage accounts and invest in the stock market only through our club. How does a club handle a withdrawal for ...
The two most commonly cited IRS Publications relative to investment clubs are IRS Publication #541 - Partnerships and IRS Publication #550 - Investment Income and Expenses The latest versions (1999 tax year) of each are available in the Trez_Talk files area. You'll find them in ...
Corporate mergers and spin-offs are the source of many questions from individuals and investment clubs. These questions usually focus on the calculation or allocation of cost basis and the determination of the holding period related to the sale of a security that was obtained as ...
Deborah Kearney courageously <g> disagrees with a recent column on non-refundable fees. She says I disagree - a fee is a fee is a fee. Well, each club, of course, is free to set its own policy. Having dealt with these questions for many years, ...
No sooner is the cyber space ink dry on my final, definitive treatise on fees than a reader chimes in, Yeah, but how about non-refundable fees. Our agreement calls for a $100 non-refundable fee to be paid by all members when they come into the ...
Entering members' fees continues to create confusion for club treasurers. Although we have written other columns on this subject, I am going to try, once more, to shed some light on this difficult topic. We are talking, here, about fee assessments against members, which will ...
Some users are having trouble figuring out how to enter certain transactions. Maybe I should dwell upon a few basic concepts in investment club accounting. When you go to Accounting in bivio, there are five different sections from which to choose - Accounts , Investments ...
Recently several people have asked about IRA's within an investment club. For example I would like to find out on how to set up IRA/Roth IRA account and offer this benefit of tax deferrel/avoidence to our club members. I understand each one of us can ...
A reader recently wanted to know where to start in researching the Beardstown Ladies Any research of the Beardstown Ladies should start with their book The Beardstown Ladies' Common-Sense Investment Guide : How We Beat the Stock Market-And How You Can, Too You can get ...