Golden Growers Coop · OTC:GGROU
Golden Growers Coop — Golden Growers Cooperative — Shareholder Meeting (2026)
27 slides from Golden Growers Coop's shareholder meeting presentation, Jun 12, 2026
Slide 1: Golden Growers Cooperative
Golden Growers Cooperative
Slide 2: Golden Growers Cooperative 2026 Annual Meeting
GOLDEN GROWERS COOPERATIVE 2026 ANNUAL MEETING PREPARING FOR TAXES ON THE EXPECTED SALE
Slide 3: Patrick Kautzman, CPA, Partner, Tax Practice Leader
PATRICK KAUTZMAN, CPA PARTNER, TAX PRACTICE LEADER – MIDWEST REGION
Slide 4: Disclaimer
DISCLAIMER This presentation is presented with the understanding that the information contained does not constitute legal, accounting or other professional advice. It is not intended to be responsive to any individual situation or concerns, as the contents of this presentation are intended for gener
Slide 5: Sale of ProGold LLC Interest Tax Reporting Timeline
SALE OF PROGOLD LLC INTEREST TAX REPORTING TIMELINE Effective date of sale expected to be 1/1/27 Taxable gain allocated on calendar year 2027 Schedule K-1 Exact date of entity liquidation unknown (~May 2027) 2027 Final Schedule K1s issued Feb 2028 similar to prior years timing
Slide 6: Taxation of Gain – Reported on Schedule K-1
TAXATION OF GAIN – REPORTED ON SCHEDULE K-1 ORDINARY INCOME SECTION 1250 GAIN (25%) CAPITAL GAIN (0%/15%/20%)
Slide 7: Taxation of Liquidation/Redemption of Units
TAXATION OF LIQUIDATION/REDEMPTION OF UNITS LIQUIDATING DISTRIBUTION LESS TAX BASIS OF YOUR UNITS = CAPITAL GAIN (LOSS)
Slide 8: History - The Conversion 9/1/09
HISTORY - THE CONVERSION 9/1/09 • Golden Growers Cooperative was taxed as a Cooperative • Concerns with corn pool and operating on a coop basis • Taxation as a C Corporation is not tax efficient • Large loss carryovers made taxable conversion possible • Taxable Conversion to MN Section 308B Cooperat
Slide 9: Tax Basis of Partnership Interest
TAX BASIS OF PARTNERSHIP INTEREST • Basis is NOT Static – Constantly Changing • Annual Taxable Income/(Loss) Allocations • Partnership Distributions • Sale of Units • Purchase of Units • Gifting of Units – (carryover basis) • Inheritance of Units – (basis step-up/down)
Slide 10: Tax Basis - Whose Responsibility?
TAX BASIS - WHOSE RESPONSIBILITY? • YOUR responsibility! • Golden Growers does NOT track your tax basis for you • Eide Bailly does NOT track your tax basis for you • Does your tax preparer track for you? • Recommend you start preparing ASAP
Slide 11: Tax Basis - Is It on Schedule K1? - Maybe
TAX BASIS - IS IT ON SCHEDULE K1? - MAYBE
Slide 12: Tax Basis - Documents You May Need
TAX BASIS - DOCUMENTS YOU MAY NEED IF YOU HAVE BOUGHT OR SOLD ADDITIONAL UNITS IF YOU HAVE ACQUIRED UNITS THROUGH GIFT OR INHERITANCE • Locate your prior Schedule K1s • Document purchase price of additional units acquired (Outside Basis) • Document basis deducted of units sold – (Tax Return for year
Slide 13: Tax Basis - Schedule K1 Transferred Capital
TAX BASIS - SCHEDULE K1 “TRANSFERRED CAPITAL” • Transferred Capital is likely NOT what you paid for shares acquired • Transferred Capital “might” be the tax basis of gifted shares • Transferred Capital “might” be the tax basis of shares sold
Slide 14: Schedule K1 – Transferred Capital
SCHEDULE K1 – TRANSFERRED CAPITAL
Slide 15: Schedule K1 – Transferred Capital
SCHEDULE K1 – TRANSFERRED CAPITAL
Slide 16: Hypothetical Example
HYPOTHETICAL EXAMPLE GGC Sells Progold LLC interest on 1/1/27 Proceeds $81,000,000 GGC Tax Basis in PGLLC ($9,000,000) Taxable Gain $72,000,000 ~15.5M Shares of GGC Taxable Gain Per Unit $4.66 Final Cash Distribution Per Unit $5.23
Slide 17: Member A Example
MEMBER A EXAMPLE Member A Owns 10,000 Units purchased in 1995 Appraised value in 2009 at $2.85/Unit at time of conversion
Slide 18: Member A Example (Continued)
MEMBER A EXAMPLE (CONTINUED) Beginning Basis 9/1/09 $28,500 Basis Adjustments 2009 – 2026 ( 22,800) Basis 12/31/26 5,700 Taxable Gain (10,000 x $4.66) 46,600 Adjusted Basis 52,300 Distribution (10,000 x $5.23) ( 52,300) Ending Basis $ 0
Slide 19: Member A Example (Continued)
MEMBER A EXAMPLE (CONTINUED) Taxable Gain $46,600 Hypothetical Gain Allocation 40% = Ordinary Income ~ $18,600 50% = 25% Capital Gain ~ $23,300 10% = 15% Capital Gain ~ $ 4,700 Federal Tax Ordinary Income (30% assumed)~ $ 5,600 Section 1250 5,800 Capital Gain 700 Total Federal Tax (~26%) $12,100
Slide 20: Member B Example
MEMBER B EXAMPLE Member B Owns 10,000 Units purchased 12/31/16 Purchase Price $4.60 per Unit from Member Z Member Z Tax Basis 12/31/16 = $1.04 per Unit
Slide 21: Member B Example (Continued)
MEMBER B EXAMPLE (CONTINUED) Beginning Basis 1/1/17 $46,000 Basis Adjustments 2017 – 2026 ( 4,600) Basis 12/31/26 41,400 Taxable Gain (10,000 x $4.66) 46,600 Adjusted Basis 88,000 Distribution (10,000 x $5.23) ( 52,300) Ending Basis (Capital Loss) $ 35,700
Slide 22: Member B Example (Continued)
MEMBER B EXAMPLE (CONTINUED) Taxable Gain $46,600 Hypothetical Gain Allocation 40% Ordinary Income ~ $18,600 50% 25% Capital Gain ~ $23,300 10% 15% Capital Gain ~ $ 4,700 Capital Loss ($35,700) Federal Tax Ordinary Income (30% assumed)~ $ 5,600 Section 1250 5,800 Capital Gain 700 Capital Loss (Limit
Slide 23: Member C Example
MEMBER C EXAMPLE Member C Owns 6,000 Units purchased 1995 Inherited 4,000 Units from Member X in 2021 Member X Tax Basis = $1.26 per Unit FMV 2021 DOD Recent Sales = $2.50 Unit
Slide 24: Member C Example (Continued)
MEMBER C EXAMPLE (CONTINUED) Beginning Basis 1/1/22 $ 7,600 Basis Inherited Units 10,000 Basis Adjustments 2022 – 2026 ( 6,900) Basis 12/31/26 10,700 Taxable Gain (10,000 x $4.66) 46,600 Adjusted Basis 57,300 Distribution (10,000 x $5.23) ( 52,300) Ending Basis (Capital Loss) $ 5,000
Slide 25: Member C Example (Continued)
MEMBER C EXAMPLE (CONTINUED) Taxable Gain $46,600 Hypothetical Gain Allocation 40% Ordinary Income ~ $18,600 50% 25% Capital Gain ~ $23,300 10% 15% Capital Gain ~ $ 4,700 Capital Loss ($ 5,000) Federal Tax Ordinary Income (30% assumed)~ $ 5,600 Section 1250 5,800 Capital Gain 700 Capital Loss ( 800)
Slide 26: Questions?
QUESTIONS?
Slide 27: Thank You!
THANK YOU! Patrick Kautzman, CPA Partner 701.239.8501 pkautzman@eidebailly.com
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