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)...

The IRS recently released a proposed revenue procedure providing computational guidance on methods and appropriate sources of data for calculating W-2 wages for purposes of section 199A(g) of the Internal Revenue Code (IRC). The notice provides three methods for calculating W-2 wages, limiting the amount of the deduction available to agricultural and horticultural cooperatives to...

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...

The 2017 Tax Cut and Jobs Act (TCJA) amended the rules for deducting business interest expense (BIE). In general, under the previous law a business could deduct any amounts paid or ac­crued for interest during the tax year. The TCJA added new limits and requires additional compu­tations in determining the amount of deductible business interest...

It has been a memorable and reflective year for the agricultural industry in general, and in particular for cooperatives with the passage of the Tax Cuts and Jobs Act – 2017 and the subsequent Consolidated Appropriations Act – 2018, Section 199A. Many concerns were raised within the agricultural community of the unintended consequences that the...

The Tax Cuts and Jobs Act (TCJA) was signed into law by President Trump on Dec. 22, 2017. The bill is the most significant change to the tax code since the Reagan era. What are the key changes included in this law? The TCJA permanently lowered the corporate tax rate and made significant changes for...