Near Intersection of I-35 & I-90 Southern Mn. | I get this same type of 1099 from the local Coop Elevator. This year for example, I will need to pay tax on some $500 worth of dividends. I did receive some cash dividends from them but this is less than half of the dividends that I need to pay tax on. Due to a good year (= high tax bracket), the amount of cash received will not cover the extra tax.
I have lived long enough to receive some of the benefits from older dividends. I have received some cash for former years. Since the tax was paid as I went those funds are tax free.
We had a local Coop that did go under a few years ago. Several older farmers were hurt quite badly since the cash dividends that they were expecting in their old age were gone. I suppose I was hurt also but did get an accounting of the amount and this did help me somewhat with my taxes.
Just yesterday I got an unexpected 1099. Several years ago, I foolishly invested in a Soybean processing adventure. We received a dividend one year. When soybean prices took off, the plant shut down rather than produce at a loss. After several years of sitting idle, a decision had to be made. The choices were to let the business go bankrupt or sell it for shares in REG. Personally I thought let it die and use the loss for tax purposes. I was outvoted and it was sold to REG. I now have some shares in REG. I don't know what their value is or if they could even be sold.
Any way, the 1099 shows that the value of these shares is supposedly some $10,000. I assume this will need to be added my 2012 income less expenses that I had for this investment. The original investments were made several years ago, hopefully my tax gal has this in her records. I could probably find the amounts but it will be a lot of work. I was in the processing of cleaning out my old files to move them to the attic. I may have to dig through them.
Edited by tedbear 1/29/2013 07:35
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1099 from Coop
