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I doubt you can complete everything correctly on your own. The calculation of the cost basis for the received shares is a complicated calculation - at one time it was detailed in IRS Pub. 541, but I don't think it is now. You can't ignore the cash distributed as that affects the member cost basis that must be allocated across the received shares. Additionally, the receiving broker will (most likely) never have the correct cost basis for the transferred shares because of the rules instituted with cost basis tracking. Those rules state that the receiving broker must take the cost basis information from the sending broker. The sending broker is going to send the club cost basis for the shares transferred. The receiving broker "may" accept correcting information from the beneficial owner of the shares, but doesn't have to. The brokers I have dealt with have all refused to adjust the cost basis on shares transferred from an investment club and have basically said, it's your responsibility to track this and correct it on your tax return when you sell the shares.

Good luck.

Ira
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