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| Friend recently showed me his patr-1099 from a co-op (I try not to deal with co-ops) and asked me if I had a correct answer. He will be going to the tax man soon but we had the discussion anyway. He bought supplies (chemicals/fertilizer) from the Co-op during the 2017 year and in the early spring of 2018 they sent him a patronage check for $900. In January of this month, they sent him a 1099-patr.
Question is this. His box 1 shows $3000 in "patronage dividends" but the cash portion (amount he put in the bank from the check they sent) was $900. The balance of $2100 was listed as "qualified equity." Is neighbor's taxable income $3000 or $900? When and how does he get the remainder $2100? IF he pays taxes on the $3,000 figure this year; how does he make sure to not pay double tax whenever they DO pay the money out?
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1099-patr
