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Vol. 53, No. 4 - Summer 2000




Gains and Losses Realized by Nonexempt Agricultural Cooperative on the Disposition of Stock in Three Corporations and Section 1231 Property Were Classified as Patronage Income: Farmland Industries, Inc. v. Commissioner

In Farmland Industries, Inc. v. Commissioner, the Tax Court confronted the issue of classifying gains and losses realized by a nonexempt agricultural cooperative from sales of stock and section 1231(b) property as either patronage or nonpatronage items. Finding that each transaction directly related to the activities of the cooperative...

Important Developments During the Year