As part of the 2017 tax reform bill, Congress passed new Section 199A, which authorizes a deduction for “specified agricultural or horticultural cooperatives.” As discussed in a subsequent post, Congress enacted Section 199A(g) to limit the 199A deduction based on 50 percent of W-2 wages. Then the Service issued regulations and Rev. Rul. 2019-11 that, among other things, addressed the calculation of W-2 wages.
Last week, the Service issued Rev. Proc. 2021-11, which provides methods for calculating W-2 wages under Section 199A(g)(1)(B)(i)’s W-2 wage limitation. Read the full Revenue Procedure here.
Read more posts regarding cooperative taxation.