Domestic Production Activities Deduction (IRC Section 199)

[gwglasso]

My client is a dentist (general dentistry), His son is an attorney who attended a continuing education seminar and the instructor was a CPA and Tax Attorney.
Per the instructor, he stated that "any" dentist who does not take advantage of the tax credit for DPAD is missing out. This info was transmitted to my client via his son. My limited research states the since my client does not manufacture any product, he is not entitled to this deduction.

Can anyone shed some light on this and if my client is entitled to the domestic production activities deduction, then where in IRC 199 will I be able to find it.

Thank you.

Gary Glasso

[Roland Slugg]

Someone should have asked that instructor what receipts by a dentist qualify as DPGR. As for me, I can't think of any.

[smithtax]

I agree with Roland. I don't see how one can interpret IRC §199(c)(4) to include dental services.

[Kram BergGold]

How About

What if a dentist manufactured braces or implants and then installed them?
Maybe the cost of goods to make them would count.

[JoshinNC]

DPAD isn't a credit

Its a deduction. Most dentists outsource dental construction, I have a client who is in that biz. DPAD would apply to that biz because they are manufacturing a finished good.