Question

Country Club Stock Cost basis

Forum|Forum|2 years ago
March 16, 2024
1 reply
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Does the cost basis for selling country club stock include the capital assessments paid over the years? In other words, is the cost basis simply what you initially paid for the stock or what you paid initially plus any capital assessments paid during the years you owned the stock?

Thank You

Jack Gehring

M

Mike9241

Assessments not included in basis

When it comes to golf club memberships and their financial aspects, there are a few considerations:

Country Club Memberships and Stock:
- The sale of a country club membership is treated as a sale of stock or an asset. If you sell your membership, you should receive a Form 1099-B, which reports the sale proceeds.
- This transaction should be reported on Schedule D of your tax return. Here’s how to handle it:
  - Cost Basis: Your costs would be what you originally paid for the membership.

In summary, while capital assessments are essential for maintaining and improving club facilities, they are not directly added to the cost of individual stock or membership. Instead, they impact the overall financial health and value of the club