The following is a letter sent to Two Rivers Cooperative Members from General Manager Tracy Gathman concerning the recent Tax Reform Bill of 2017 and its inclusion of a replacement for the Section 199 Tax Deduction.
December 21, 2017
It has always been my policy to steer clear of giving tax information due to its incredibly complex nature and how individualized tax filing can be. However, there are some current developments related to Section 199 I would like to bring to your attention as we move forward.
As I am sure many of you have heard, the Tax Reform Bill of 2017 has been approved in both the House and Senate and has been sent to President Trump for his signature.
At this time, we know the Section 199 deduction we have been passing through to you over the past seven years has been eliminated. However, there is a new deduction in the approved bill which is being called Section 199A. At this point we are continuing to analyze what the new deduction will mean for your cooperative and its members.
I can say that in our initial analysis of the bill, it appears to be a reasonable replacement and I believe in the end may turn out to be more advantageous than what Section 199 has been. We will continue to work with our tax consultants to make a final determination regarding the new deductions which may be available as part of the new Tax Reform.
I want to remind everyone that as I write this information, the Tax Reform Bill of 2017 has not yet been signed.
If the bill is signed and we have made a determination on how this change may affect both you and your cooperative, we will once again be in contact with you and the local tax professionals to set up meetings explaining how this change may be best utilized moving forward.
Two Rivers Cooperative