Taxable cooperatives – including Subchapter T cooperatives and taxable rural telephone and electric cooperatives – must determine whether income and expenses are considered patronage-sourced or not. This is called patronage determination. It is critical to taxable cooperatives because it determines …
Patronage Determination
Cooperative-Subsidiary Consolidation Issues
Many cooperatives provide a range of services to their members. Sometimes these services are provided through subsidiaries. Each cooperative must choose the right mix of services to provide and customers to serve, along with the best corporate structure to provide …
AHC Attorney David Cook Presents on Capital Credits and Cooperative Tax
AHC attorney David Cook will present at the National Telecommunications Cooperative Association’s Finance and Accounting Conference concerning two important topics for telecommunications and telephone cooperatives. He will discuss “Strategies for Managing Capital Credits” and “Handling Large Gains and Losses.” Here …
Handling Cooperative Losses
View the PDF version of this Cooperative Tax Brief here.
When it comes to financial losses, many cooperatives are uncertain how to handle them. Because cooperatives attempt to operate at cost, the uncertainty likely arises from the rare occurrence …
AHC Cooperative Tax Brief: Telephone Cooperative’s Sale of Subsidiary
In the latest cooperative tax ruling, the Service ruled that a cooperative’s (“Cooperative”) gain on sale of stock in corporations that offered services to Cooperative’s members was patronage-sourced. The ruling was important to Cooperative because it expected to fail the …