Domestic Production Deduction

[S T]

Have a publisher/printer (don't which you would call him) that produces the weekly church publications for various catholic churches. He supplies the paper, printing and delivery.

The church does not pay for these publications, the t/p solicits independent businesses to advertise in the publications and collects the advertising fee from the various advertisers.

T/p publishes and produces the publications and delivers to the churches.

Would he qualify for the Domestic Production Activities Deduction?

Thanks

Sandy

[JG EA]

Have a publisher/printer (don't which you would call him) that produces the weekly church publications for various catholic churches. He supplies the paper, printing and delivery.

The church does not pay for these publications, the t/p solicits independent businesses to advertise in the publications and collects the advertising fee from the various advertisers.

T/p publishes and produces the publications and delivers to the churches.

Would he qualify for the Domestic Production Activities Deduction?

Thanks

Sandy

http://www.irs.gov/businesses/small/article/0,,id=150439,00.html

"Qualified production activities include manufacturing, producing, growing, and extracting tangible personal property, computer software, and sound recordings, and the construction and substantial renovation of real property including infrastructure. The production of certain films is also a qualifying activity as are certain engineering or architectural services."

Are these tangible personal property? You can't depreciate the final product so maybe not? I'm just talking here really don't know.

[ChEAr$]

Call the local newspaper an dsee

if they claim dpa deduction on their tax return. After all, a newspaper, like a church
bulleting, is tangible personal property.


(Tangible personal property doesn't have to be depreciable to qualify.)

[S T]

Help

Any more thoughts?

Sandy

[S T]

I think I found it

Thanks ChEAr$ for pointing me in that direction.

After considerable research on the internet about newspaper publishing, I think I found that this particular client would qualify, as some newspapers would. At least I hope so, as I am preparing the return that way.

Good slide show presentation regarding construction and other industries, for those that are interested. http://www.oceans1120.com/Presentations2006/Sec_199.ppt

and then there was another update found http://www.bnasoftware.com/media_lib...Activities.pdf

and http://accountant.intuit.com/practic...ection199-2006

and http://taxprof.typepad.com/taxprof_b...006-4323-1.pdf

Okay I am done, but thought the above might be useful for someone else since I already found some of the research info.

Sandy

[veritas]

Oceans 1120

I enjoyed the powerpoint presentation.