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Blog Author: Bruce Mayer

Worker Co-op Owners: Where to Report Patronage Dividends (1099-PATR) on Your Form 1040 for 2021

This article outlines a suggestion for reporting your patronage dividends income for the 2021 tax year. Please keep in mind the caveat that this is not individual advice and you

Net Operating Losses for 2021 and Beyond

If your cooperative is taxed as a corporation and has had losses in past years or may have them in the future the rules have changed for how those losses
hand placing lettered cubes spelling out the word "leasing"

New Rules for Lease Accounting

The rules for accounting for leases in a set of financial statements in accordance with GAAP (Generally Accepted Accounting Principles) will change significantly starting in 2022.  The logic for making
a 1099 document on a table

What Your Cooperative Needs To Know About 1099 Filing

The IRS requires reporting of certain 2020 payments to the recipient of the payment and to the IRS on a Form 1099. This needs to be completed, sent to the

COVID-19 Co-op Update

Many of you have already reached out to us with questions/concerns regarding the impact of COVID-19 on your co-ops and what to do about it.  Hopefully, the information below will
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Worker Co-ops Operating Under Subchapter T and the New Tax Law

The new tax law was amended in March 2018 to change the patronage dividends rules but did allow them to be eligible for the 20% pass through business deduction.  Co-ops
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Taxation of Corporation vs. Partnership vs. S-Corporation

Taxation of Corporation vs. Partnership vs. S-Corporation

Patronage Dividends under the New Tax Law

On March 23, 2018 Congress passed an amendment to the new tax law that removed the “Grain Glitch” where private grain elevators were significantly disadvantaged.  Using per unit retains, a

The New Tax Law and Co-ops Taxed as Partnerships or S-Corporations

Cooperatives that are taxed as partnerships or S-corporations fall under the general tax rules applicable to all partnerships and S-corporations.  The Subchapter T rules that apply to incorporated cooperatives do

Revised Depreciation Rules

Purchases of equipment, vehicles and other business property that is not buildings and real estate are eligible for more rapid write-offs.  These rules are changed on a regular basis so