Domestic Production Activities Deduction
Compnay has the following three activites - which one(s) qualify:
Compnay has the following three activites - which one(s) qualify:
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Domestic Production Activities Deduction
Company has the following three activites - which one(s) qualify:
A. Customer sends them a product-ask them to modify it or test
it to see if it can be used for something.
B. Customer sends them a product-they modify(enhance) it-sent back to the
customer for their resale
C. Client makes their own labeled and private labeled products for sale
The company is extremely profitable, lots of salaries-just need to know which ones to isolate and take...Comment
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she didn't itemize, either
...Since she didn't itemize, her expenses couldn't be taken which would have increased her income. That is really why it didn't occur to me to take it as hobby income. She worked her buns off, but spent too much $$ in advertising.
Now, hobby income would have increased her INCOME by the gross receipts and not reduced by expenses. The increase in income would not have changed her EIC b/c of it not being subj to SE tax. But at least her EIC would not have been reduced b/c of the loss reducing ALL her income.
Could I have carried a NOL forward for her business alone? I don't think so.
Anyway, you question was for someone with much greater knowledge than me.
... carry on...
~p"I am proud to pay taxes in the United States. The only thing is I could be just as proud for half the money." Arthur GodfreyComment
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