Investment club disbanded, how to apply that money to a new investment

[pvee]

My wife was in an investment club for years that ended in 2019. She took the long term gains from that and invested in  Pershing / Cambridge.

How do I show that money was rolled over to another plan so we don't have to claim it as income.

thank...

[Opus 17]

You can't.  Investment clubs don't have any particular tax advantage.  You report and pay tax on the current capital gains then you have a new basis on whatever you buy next. 

[pvee]

Thank you,  I guess   !!.  lol

So the basis for the new investment would be the capital gains amount, or the actual dollar amount put into the new investment.??

SIncerely

Pvee

[Opus 17 · Accepted solution]

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@pvee wrote:

Thank you,  I guess   !!.  lol

So the basis for the new investment would be the capital gains amount, or the actual dollar amount put into the new investment.??

SIncerely

Pvee

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Once you cashed out the old account and paid the gains tax, it doesn't matter how you spend the money and in fact, you can't track from one to the other.  Once you put money in your pocket, it becomes the same as your other money.  So the basis in the new investments is whatever you paid for them.