Southwest Iowa Renewable Energy LLC : YEAR END TAX PLANNING INFORMATION - Form 8-K
December 13, 2022 at 05:05 pm EST
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YEAR END TAX PLANNING INFORMATION
We prepare our financials on a GAAP basis to report in our SEC filings - 10Q and 10K, using our fiscal year, which ends September 30th. Our tax returns, however, are on a calendar year and are prepared with tax accounting methods, which are different from GAAP accounting.
Several items, such as depreciation of plant assets and amortization of start-up expenses, create "timing differences" between the GAAP financial statements and the tax returns. Tax depreciation was on a significantly accelerated schedule during the early states of our operations, which decreased taxable income compared to GAAP income.
Please note the following reminder regarding our 2022 expected tax considerations:
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Passive Loss - For some of our members, losses from passive activities may be deductible only to the extent of the taxpayer's income from other passive activities. Passive activity losses not used currently may be carried forward.
The information provided in this notice is intended for general information purposes only and is not intended as tax or legal advice. You should contact your personal legal and tax advisors for advice or assistance regarding the tax consequences of our annual K-1, preparation of your federal returns, and for help with any other questions that you may have relating to your personal tax situation.
The following are our current estimates of tax items for the calendar year ended in December, which are provided for your planning purposes. Actual results will vary. The final tax information will be provided to you on IRS Form K-1 by February 15, 2023.
2022 Tax Estimate
Ordinary taxable Income per Unit
$4,200
In September, we communicated to you the Research and Development tax credit that we filed for the 2018 calendar year, which equated to $31 per share. We are happy to announce that we have the paperwork with the IRS for calendar years 2019, 2020 and 2021. Below are the amounts for each of those years:
Research and Development Tax Credit
2018 tax credit per unit
$31/unit
2019 tax credit per unit
$141/unit
2020 tax credit per unit
$328/unit
2021 tax credit per unit
$140/unit
All qualifying tax credits for the initial 4-year lookback must be taken on the current year tax filing (2022). Please consult your tax advisor for any further questions related to the impact of your income tax situation.
Southwest Iowa Renewable Energy LLC published this content on 13 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 December 2022 22:05:03 UTC.
Southwest Iowa Renewable Energy, LLC is engaged in the production of ethanol. The Company sells its ethanol, distillers grains, corn condensed distillers soluble, distillers corn oil and carbon dioxide (CO2) in the continental United States, Mexico and the Pacific Rim. Its production facility (the Facility) is located in Pottawattamie County in southwestern Iowa, south of Council Bluffs. The principal purchasers of ethanol are wholesale gasoline marketers or blenders. The Company produces approximately 123.3 million and 127.0 million gallons of ethanol. It produces two forms of distillers grains, namely wet distillers grains with solubles (WDGS) and dried distillers grains with solubles (DDGS). The Company's system separates corn oil from the post-fermentation syrup stream as it leaves the evaporators of the ethanol plant. The corn oil is then routed to storage tanks, and the remaining concentrated syrup is routed to the plantâs syrup tank.
SOUTHWEST IOWA RENEWABLE ENERGY, LLC 
