Choosing the Best Income Tax Status for Your Cooperative - UNL CropWatch, April 5, 2013

Choosing the Best Income Tax Status for Your Cooperative - UNL CropWatch, April 5, 2013

April 5, 2013

Farmer cooperatives should periodically review their business activities, income sources, and patronage distribution practices to determine if their current federal income tax status is best for them. In the constantly changing business environment of recent years, many cooperatives have found it advantageous to change their tax status.

In this Cornhusker Economics article Jeff Royer, professor in the UNL Department of Agricultural Economics, describes various factors that cooperatives should consider when looking at the best tax status for their operation.