To view this Cooperative Tax Brief in PDF, click here.
Allocation and distribution of earnings is a fundamental tenant of cooperative operation. It is not only important to comply with bylaws and other contractual agreements with patrons, it is …
Cooperative Posts
Cooperative Exchanges Preferred Stock for QWNAs
Read this Cooperative Tax Brief in PDF format.
As shown in prior posts, the most interesting rulings are those that involve the interplay of cooperative taxation (including Subchapter T) and other tax laws governing traditional corporations. A recent …
Iowa coop announces plans to go carbon-free via REC purchases
Iowa coop Raccoon Valley Electric has plans to go carbon-free, and its first step is to purchase enough Renewable Energy Credits (RECs) to fully offset its use of carbon-based fuels.
Renewable Energy Credits(RECs), also known as Green tags, Renewable Energy …
Idaho Electric Coops Explore Potential Merger
After decades of casual conversations, two Idaho coops are now seriously discussing a merger which if successful could save members over $38m over a ten-year period.
Last November, Fall River Electric and Lower Valley Energy released a 30-page document evaluating …
REIT’s Receipt of Patronage Dividends is Excluded from REIT Income Tests
In a prior post, we discussed the interaction of Subchapter T (governing cooperatives) and Subchapter M (governing REITs). As explained in the prior post, REITs are Real Estate Investment Trusts that are required to generate a sufficient …
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 …