Found this somewhat recent private letter ruling for how #coops should treat capital gains from assets used in the #coop's operations (such as the sale of a building) in terms of patronage.

The gist is that the patronage portion of the capital gain should be distributed on the basis of all #patronage allocated during the period that the property was owned and in operation.

https://www.taxnotes.com/research/federal/irs-private-rulings/letter-rulings-%2526-technical-advice/irs-rules-on-cooperative%E2%80%99s-sale-of-land-as-patronage-income/2cwx6

#cooperatives #cooplaw #cooptax #taxlaw

#CoopLaw question: how do co-op subsidiaries play with patronage?

I recall staffing.coop has some sort of LLCish subsidiary structure, and have been giving some thought to this for the #RealEstateCoop I've been working on, since putting individual properties into their own LLCs is a common practice in commercial RE. But, if a tenant is renting from or employed by the LLC, does their patronage relationship "pass through"?

cc: @tbeckett

Hey @dmokreis & @tbeckett, I've been wrapping my head around the idea of issuing additional "common" consumer #coop shares as a mechanism for startup capitalization. Under #vt law, up to 10% of equity may be owned by any single member, and a max dividend of 6% is allowed.

In particular, it would make sense to make a formal commitment to pay a return on capital on such shares before patronage, and was wondering if you thought that commitment should live in the bylaws, or be a policy? #cooplaw

The Sustainable Economies Law Center, which does great work on supporting the design and dissemination of #coop structures, is having a spring fundraising drive with matching donations today. I just kicked them $25, and would encourage others to consider supporting their important work on the #SolidarityEconomy!

https://theselc.nationbuilder.com/give #cooplaw #coops

@ntnsndr @GuerillaOntologist @ImmortalM Whoever it is seems to actively not want to be known...

#coopcounsel #cooplaw