If you received any patronage dividends from a cooperative of at least $10, the cooperative will send you a Form 1099-PATR, Taxable Distributions Received From Cooperatives.
You may also receive this form for any backup withholdings made on your behalf.
Most often, Form 1099-PATR reports dividends associated with farms. However, you may also receive this form for other reasons, for example if you have your home mortgage from a land bank.
If the dividends reported in box 1 of your 1099-PATR fall into either of the following situations, you do not have to report them:
- Your dividend was paid on property purchased for personal use; or
- Your dividend was paid on capital assets or depreciable property used in your business.