Domestic production activities deduction

[Gene V]

Any thoughts on the new Domestic Production Activities Deduction-this is a deduction on line 35 on form 1040 with attach Form 8903.

I could see it effecting my general contractor and subcontractor in the renovation of residential building.

By the way, I like the message board--will done Brad,Paul Nancy,Louise and Herb.

Gene

[Bees Knees]

Domestic production activities deduction

I hope to get some insight when I start attending seminars this year. I was surprised how little info they had on it last year when it first came out. I suppose everyone is waiting for someone else to actually try and figure that thing out before committing. I think also, the IRS was supposed to come up with specifics for us.

But I do agree, anyone with a construction type client is going to need to pay attention to this one. I have several.

[Mark Goldberg]

Schedule C

Yesterday I spoke with another tax pro who attended an all day seminar on the topic. I asked him does a sole proprietor have to have employees to qualify for the credit, last fall NCPE said, "no". He said the regs now say or will say, yes. So we don't have to worry about this for many of our clients.

[Bird Legs]

Domestic Production Activity Deduction

Had a short introduction to this last fall and the instructor mentioned that it would based on the payroll.
This was the intention of this deduction, to increase the number of people in the work force.
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