Southeast Wyoming | EIA Little Guy - 1/28/2013 20:29 But it won't show the right number. When I sell to the elevator, or through an elevator, they take discounts, trucking, dockage etc. When I get the 1099 those are INCLUDED in the total. So for example if the the my books say they paid me $100, the 1099 probably would say $109 ($9 for trucking). It complicates my books A LOT. How can you send me a 1099 for more than you paid me? I'd be OK with it if they paid me 100% then billed me for trucking and discounts.
At the time you were paid you should have received paperwork documenting those charges. I always do; I record the gross amount as crop sales and the discounts and etc as expenses. That seems to be the proper way of tracking income and expenses.
The dividends are what get confusing, especially those from our electric coop. They pay back 50% from recent years often and then you need to go back and calculate which portion of that dividend was for household electricity and and which portion was for irrigation and shop. The same thing needs to be done with lpg (household heating) purchased through a fuel coop. The grain coop dividents are much simplier.
When I managed the local coop many many years ago, one board member said that a coop is a place where farmers can band together and pay higher prices. Yes, it does get to that point at times but most of the time paying some income tax on an investment to enhance marketing and purchases is a good investment. If not, go elsewhere.
Edited by Gary Lyon 1/29/2013 15:30
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1099 from Coop
