The Internal Revenue Service (IRS) issued final rules regarding the domestic production activities deduction 199A(g) (DPAD) Thursday. The IRS has made the decision to not allow the DPAD to apply to non-member-based business. The Office of Information and Regulatory Affairs (OIRA) completed its review of the final regulations under 199A(g) and plan to reveal guidance...

It’s that time of year when we reflect back on what happened over the past year. In many ways, 2019 looked very similar to 2018. That’s not necessarily a good thing. Most of you couldn’t be done with 2018 fast enough. Once again, we saw a very wet spring.  We thought the spring of 2018...

I believe the general consensus is that everyone is glad to have 2019 behind us!  What does 2020 hold for the industry and our clients?  As always, our perspective comes from being involved in your audits, board and annual meetings, planning sessions, visiting with management and being immersed in agriculture.  Here are our thoughts: Capital...

The Tax Court recently issued a long-awaited ruling in the GROWMARK section 199 case.   As in the AGP case (issued in October), the Tax Court ruled that section 199(d)(3) does not require separate domestic production activities deduction (DPAD) computations for patronage and nonpatronage activities. However, once DPAD is computed it must be allocated between patronage...

The following is a reprint of an article from our summer 2015 newsletter. We are seeing more use of non-qualified patronage from the regional cooperatives. Treatment of these allocations varies from client to client, firm to firm, etc. Even our decision may change as we see the regionals indicate or demonstrate they intend to revolve...

In mid-June the IRS released proposed regulations (156 funfilled pages) providing guidance to cooperatives and their patrons regarding the deduction for qualified business income (QBI) under section 199A(a) of the Code. This guidance also included specified agricultural and horticultural cooperatives (“specified cooperatives”) and their patrons regarding the deduction for domestic production activities under section 199A(g)...