Looking for some additional help in how to answer this question. I have a Farmers Coop 1099 PATR with #'s in boxes 1,3,& 7. I understand that Box 1 - Patronage dividends is taxable amount the Coop has allocated to me. I understand Box 3- Per-unit retain allocations is the gross value of the grain I sold to the Coop. I understand Box 7 - Qualified payments is the amount the Coop has paid me both in dividends and grain sales. So, what is my net income? Is it just the Coop grain payments or is it all farm income or is it all income or is it only the dividend? I reviewed an answer to a similar question in '20 but am unclear just what #'s to use in determining the %.
Is the amount received on the 1099PATR my dividend - Box 1?
What is my revenue received?- All farm gross income, all grain sales, all qualified payments????
Then last but not least what is the net income they are referring to? All income from all sources, all income from only farm sources, only Coop dividends, only Coop Per unit retain allocations,???-
"taking the amount you received on the 1099-PATR and dividing it by the total amount of revenue you received. This will give you a percentage. Take the net income and multiply the net income by this percentage."
Thank you in advance
