WC Iowa- mostly river bottom | The coops are taking a Domestic Production Activities Deduction that uses our grain sales less some expenses x 6% limited by 50% of thier w-2 wages. This is a deduction that we farmers should be getting but some powerful companies figured out that they could use our grain sales to get that deduction. It's a great deal for them because it's a deduction that doesn't cost them any money. There is a pass thru provision where they could pass it thru to thier members but that ain't going to happen. It's a real crooked deal. No way should they be able to confiscate our grain sales to get that deduction and not pass some of it on to us. Any farmer with a profit and w-2 wages would qualify on their own. They're saying the grain proceeds they paid you is an allocated pass through so you have to list their number along with any patronage dividends on the patronage dividend line of your scedule F and not show any grain sales. If you don't, the IRS computers will kick you out for an audit. Any difference between your grain sales and their number has to be listed as an expense to make your income come out right. It's not right that they do this. There are some big crooks out there pulling the strings.
Edited by Chief 2/10/2010 22:14
|
IRS change.. can't use net $$ from grain reciepts
