A per-unit retain certificate is a written document issued by an organization that informs the recipient of a specific dollar amount allocated to them as a per-unit retain allocation. This certificate serves as a formal acknowledgment of the allocation made to the recipient by the organization, typically in the context of cooperatives.
Per-unit retain certificates are primarily used in the context of cooperatives, particularly in agricultural and consumer sectors. They are important for members of cooperatives, as they represent a share of the organization's earnings that are retained for future distribution. Users can manage related processes using legal templates available through platforms like US Legal Forms, which can help in drafting necessary documents and understanding the implications of these certificates.
Here are a couple of examples of abatement:
Example 1: A farmer who is a member of a cooperative receives a per-unit retain certificate indicating they have been allocated $500 from the cooperative's earnings for the year. This amount will be retained and possibly distributed in the future.
Example 2: A consumer cooperative issues per-unit retain certificates to its members, reflecting their share of profits based on purchases made during the year. (hypothetical example)
According to 26 USCS § 1388, per-unit retain certificates are defined within the framework of the Internal Revenue Code, specifically relating to cooperatives and their patrons. This statute outlines how these certificates are treated for tax purposes.
| Term | Definition | Difference |
|---|---|---|
| Retained Earnings | The portion of net income not distributed to shareholders. | Per-unit retain certificates are specific allocations to members, while retained earnings refer to overall profits kept by the organization. |
| Allocation | The process of distributing resources or earnings among members. | Allocation is a broader term, whereas a per-unit retain certificate is a specific document reflecting that allocation. |
If you receive a per-unit retain certificate, review the document carefully to understand your allocation. Consider consulting with a financial advisor or a legal professional if you have questions about its implications. You can also explore US Legal Forms for templates that can assist you in managing related documentation.
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It is a written document that informs a cooperative member of their allocated share of retained earnings.