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Domestic Production Activities Deduction?

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    #1

    Domestic Production Activities Deduction?

    Could someone give a brief explanation of this deduction? I have one client that makes a product and sells it.
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    #2
    Originally posted by zeros View Post
    Could someone give a brief explanation of this deduction? I have one client that makes a product and sells it.
    Not sure it's possible to be brief. Below is a short quote from TheTaxBook, which has a section on this topic, I would expect any other desk reference to mention it too. You can also just go through the instructions for the IRS Form on which it is reported.

    "Who qualifies for the deduction? Any taxpayer with all three of the following qualifies for DPAD.

    • A positive amount of QPAI, [Qualified Production Activities Income]

    • A positive AGI for an individual, estate, or trust, or positive taxable income for all other taxpayers, and

    • Form W-2 wages paid to employees of the taxpayer.."
    "You said it, they'll never know the difference. Come on, we'll paint our way out!" - Moe Howard

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