Dennis Gardiner, CPA, Managing Partner In reviewing the patronage allocations for a number of our clients, I noted plenty of non-member business in certain divisions of the cooperative. Grain and agronomy have higher member business percentages, while feed and energy are typically the lower member business percentages. Feed is usually a function of business done...

Since DPAD/Section 199, now Section 199A(g), began in 2007, cooperatives have been building up significant increases in retained earnings and permanent capital. Additionally, bonus depreciation has been an available tax deduction for use for many years recently. As these deductions were being used, members have received a lesser percentage of the patronage-sourced (allocable) earnings. Percentages...

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...

Which “Grinch” visited our coop clients this year? The one whose heart grows 3 times? Or the one who stole all the presents? Well, the answer is it will vary! The effects of the new tax law changes are still being contemplated (and debated) and you are likely getting inundated with information from many sources....

The American Taxpayer Relief Act of 2012 was signed into law on January 2, 2013. This new law modifies or extends many business tax breaks, and also contains many changes to individual income tax. There are substantial additional changes in this act, but the following are most likely to impact you and/or your business.

The Limited Cooperative association structure would allow you the flexibility to accept outside investor equity. The outside equity may afford your cooperative the advantage of timely opportunities or to balance your debt and equity capital structure. We are not encouraging this structure for all of our cooperatives, but we have seen enough through the last 48 years to know that it is worth considering; particularly as our cooperative clients continue to grow. We are not attorneys, so we would have to direct you to the legal resources to address the details. Contact your Gardiner Thomsen partner or manager if you would like to start the discussion.