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Blog Category: Cooperative

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
man in tie holding clipboard with paper on it saying "employee retention credit"

Employee Retention Credit Summary

The employee retention credit (ERC) has been getting a lot of press – and generating a lot of questions. Here is a summary. Background of ERC Under the Coronavirus Aid,
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
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2021 Standard Mileage Rates Updated for Business, Medical, Charity Travel

The Internal Revenue Service has released the 2021 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable and medical purposes.   The
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
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Will Your Recordkeeping Help You Survive an Audit?

Whether you are a new or a well-established business, maintaining good business records is essential to supporting your business income and tax deductions. Good recordkeeping means you also claim the
man sitting at computer

Revenue Recognition for Initiation Membership Fees

New Accounting Guidance for Revenue Recognition (ASC 606) On May 28, 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic

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