IS an 8995-A needed for this 1099-PATR?

[dmj4]

My sole proprietor client received a Substitute Form 1099-PATR from a Farmers Cooperative.
The dividend is based on the client's purchases and nothing else.

The only thing on the Substitute 1099-PATR is:
“Statement is for recipients of qualified written notices of allocation and cash (Patronage Dividends –Box 1) totaling $103.46”


The client does file a Schedule F and I have put it there as usual.

Since there is no amount listed for "Qualified Payments" on the 1099-PATR or anything else other than mentioned above, is the 8995-A form even used in this situation?

Thanks!

[mhcpa1964]

I use 8995-A in order for the 1099-PATR generate the QBI.

[Rapid Robert]

The form instructions say, "If you received qualified payments reported to you on Form 1099-PATR from specified agricultural or horticultural cooperative, you must reduce your QBI by the patron reduction and use Form 8995-A to compute your QBI deduction."

My software (using a simple test case) generates Form 8995 for your scenario, not 8995-A, since no qualified payments were included on the 1099-PATR. It only generates 8995-A if I enter qualified payments.

The online help also states, "If the farming business is a member of a specified agricultural or horticultural cooperative, enter the qualified business income allocable to qualified payments received from the cooperative. The amount entered here is on Form 8995-A, Qualified Business Income Deduction – Schedule D – Special Rules for Patrons of Agricultural or Horticultural Cooperatives."

[terryats]

If your client is just buying personal items from coop the dividends are only a discount, not income. You don't report them at all. Here is a link from Turbo Tax that explains it in a easy to understand way: https://ttlc.intuit.com/community/en...-patr/00/26767