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)...

Over the past several years we have seen many of our clients enter into interest rate swap agreements in an effort to stabilize interest expense. An interest rate swap is a forward contract in which one stream of future interest payments are exchanged for another based on a specified principal amount. The most common type...

As the calendar has flipped to 2019, I wanted to provide you an update and reminder on accounting standards that may now be in effect or are getting closer to implementation so that you will be prepared. Revenue Recognition (2014-09) In 2014 the Financial Accounting Standards Board (FASB) issued new revenue recognition standards. The impact...