Domestic Production Deduct for S-Corp Owner?

[lowergm]

Which income number is multiplied by 6% and compared to 1/2 of applicable W-2 wages in arriving at the domestic production deduction? I have done all the allocations required and have arived at QPAI. Do I use the 100% shareholder's AGI as reported on form 1040 OR the taxable income of the underlying s-corp?

Thanks for any suggestions and ideas where I might get some written direction. All I've found on the IRS site is unclear.

Thanks,
RML

[Matt Sova]

S-Corp

The deduction that passes thru via the K-1 is calculated at the corp level so you use corp income.

[ChEAr$]

And......

The deduction that passes thru via the K-1 is calculated at the corp level so you use corp income.

what if corporation has two (equal) K-1 type shareholders?