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southern MN | If you aren't familiar with the 199 (old way), it offered a good nickel to dime per bu of tax deductions from my coops. They could pass down unused tax deductions to its members from the sale of grain. It made some sense, these were real tax deductions a coop member could use, as part owner.
The new plan (199A) was to get rid of most of that and only allow you 20% of the dividend one gets from the coop. Around here most coops make nothing to a few 100ths of a penny on grain, and so this would have offered me a deduction worth a case of beer or so. About worthless.
Instead they misworded it, where as it says you can deduct 20% of your gross sales of grain to a coop from your tax bill. Which makes it worth about what the old 199 was, or perhaps double. The math of it is more cmplex than I described here, with limits, but this is just for illustration.)
So, they took a program that made some sense and offered coop members a way to use left over deductions - got rid of it.
Intended to put in a nearly valueless deduction in its place, messed up and put in something that makes no sense but offers about the same or little more deductions than we had before.
And everyone is up in arms about it.
Paul | |
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