COOPs: Federal Tax Issues (Currently Unavailable)

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2025 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

This course explains the varied and unusual details of Cooperative Associations (COOPS) and the issues encountered with filing federal income tax returns. There are specific areas in the Internal Revenue Code that deal with CIRAs and Cooperatives. The CIRA industry has tax standards that relate often to state laws and rules for Cooperative Associations.

Publication Date: January 2022

Designed For
CPAs, Property Managers, Investors, and other accounting professionals working in the tax areas of Coops. The tasks include revenue and expense issues as well as capitalization issues and ownership issues. The actual ownership of common property in a Coop influences how capitalization and depreciation will be handled.

Topics Covered

• Tax differences between associations like residential and commercial Coops
• Tax differences between Timeshares and Coops (both residential and commercial) as required
• How the differences effect the filing of federal and state tax returns
• Is depreciation any different in a Coop compared to another entity?
• What level of service is required and when?
• Revenue recognition specifically for Coops

Learning Objectives

• Identify the types of tax returns required to be filed by a Cooperative Association
• Describe the mechanics of providing tax returns to a CIRA depending on the type of CIRA and the level of attention needed
• Recognize the procedures that CIRAs may make concerning revenue, capitalization issues, and deductions for the cooperative association
• Identify when an owner/member of an association may be affected by the CIRA's accounting implications
• Identify and explain the capitalization policy of a Cooperative Association
• Recognize how member assessments received in advance should be treated for financial reporting purposes
• Identify the number of rulings that address what constitutes a Section 118 capital contribution versus a Section 61 gross income amount
• Recognize guiding principles with respect to the basis of cooperative organizations relates to the fact that the cooperative must impose limitations on amounts that can be distributed

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basics of CIRA accounting. Federal tax issues and state and local tax issues should be understood.

Advance Preparation
None