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does not adopt the per se rule for capital gains and
losses, the gains and losses at issue must be classified as
nonpatronage. In either event, respondent argues that the
subject gains and losses cannot be combined with or netted
against petitioner's patronage losses.
This and the other courts to have considered whether
an item of income should be classified as patronage or
nonpatronage, have resolved the issue based upon the
relationship of the transaction that generated the income
to the marketing, purchasing, or service activities of the
cooperative. CF Indus., Inc. v. Commissioner, 995 F.2d
101, 105 (7th Cir. 1993), modifying and affg. T.C. Memo.
1991-568; Cotter & Co. v. United States, 765 F.2d 1102,
1106 (Fed. Cir. 1985); Land O'Lakes v. United States, 675
F.2d 988, 993 (8th Cir. 1982); St. Louis Bank for Coops. v.
United States, 224 Ct. Cl. 289, 624 F.2d 1041, 1050 (1980);
Buckeye Countrymark, Inc. v. Commissioner, 103 T.C. 547,
562-563 (1994); Certified Grocers of Cal., Ltd. v.
Commissioner, 88 T.C. 238, 243 (1987); Illinois Grain Corp.
v. Commissioner, 87 T.C. 435, 459 (1986); Dundee Citrus
Growers Association v. Commissioner, T.C. Memo. 1991-487;
Washington-Oregon Shippers Coop., Inc. v. Commissioner,
T.C. Memo. 1987-32; Twin Country Grocers, Inc. v. United
States, 2 Cl. Ct. 657, 662 (1983); Astoria Plywood Corp.
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