Sec 199A Deduction and its Potential Impacts on Producers and Grain Marketing Firms
Author
Published
1/29/2018
The newly passed Tax Cuts and Jobs Act of 2017 introduced substantive changes to individual and entity-level tax rates and deductions, many of them welcomed by individuals and corporations. One section of the Internal Revenue Code (IRC) in particular--IRC § 199A Deduction for Qualified Business Income of Pass-Through Entities (Sec 199A hereafter)--is getting a lot of attention, raising questions and eyebrows for its potential impacts on grain marketing decisions. In essence, language in this section of code gives producers marketing grain a significant incentive to sell to a cooperative rather than a non-cooperative firm. For more, please click here.
Want more news on this topic? Farm Bureau members may subscribe for a free email news service, featuring the farm and rural topics that interest them most!