The straight line

As we all know, tax laws change frequently. Under current law, we can compute and deduct (or allocate to your members) this section 199 deduction. In fact, this deduction even increases for tax year 2009 to 9% of adjusted taxable income before PURPIMs and allocated qualified patronage (currently 6%).

We feel that this ruling, coupled with IRS instructions regarding effective dates of electing the enhanced section 199 calculation, provide a clear authority to amending cooperative returns for purposes of computing and deducting the larger section 199 deduction.

The Internal Revenue Service rulings are clear that for Federal Tax purposes, under code section 1382, payments made by a marketing cooperative to its patrons for product are considered Per Unit Retains Paid in Money or PURPIMs.

Since the IRS issued Internal Legal Memorandum 200806011 in early 2008, which provided guidance on computing the section 199 deduction for both pooling and non-pooling cooperatives, we at Gardiner Thomsen have spent many hours researching this issue to provide the best possible tax service to our cooperative clients.

Gardiner Thomsen strives to provide you with timely, valuable information so you can make more informed decisions. Two of the vehicles we use to do this are this printed newsletter and our E-newsletter. In an effort to better organize and track the popularity of certain topics and ensure your privacy and profile settings are current and correct, we will be sending out a printed mailing for you to fill out and return.

Gardiner Thomsen is expanding! We are very excited about our recent growth and would like to take this opportunity to introduce the newest members of our team. We know they’ll be valuable assets to the Gardiner Thomsen family and will do a superb job serving our clients.