Dpad

[JG EA]

Is this right or wrong? Section 179 does not have to be subtracted on an S-Corp to compute the deduction.

[gkaiseril]

Pass Trhorugh

Since a Sub S Corporation is a pass through endity, the tax items pas to the shareholder and are teated as if the shareholder incurred them on the shareholder's return, there is no determinantion by the Sub S Corporation other than taking or not taking the Section 179 deduction and computting the

. The final detemination is made on each individual shareholder's return. So one can have a case where one shareholder could take their portion of the Sub S's 179 deduction and another because of income or other taken section 179 deductions can not benefit fromt the Sub S's election.

[JG EA]

Are you answering my Domestic Production Activity Deduction Question?

In determining whether there is a deduction to pass through, I only take income, minus cog, minus indirect expenses and NOT 179? Is that correct?

[BOB W]

I believe all expenses must be used to compute the DPAD.

[Safire]

Is this right or wrong? Section 179 does not have to be subtracted on an S-Corp to compute the deduction.

I deducted the Section 179 when calculating the QPAI for Line 12, Code P on the K1

[JG EA]

OK
Thanks, I wasn't sure. I appreciate your thoughts. And you are probably right.

[Safire]

I think I am right , I researched DPAD fairly well last year, but you know how some things just don't stick in your head, I just took my own word for it this year, LOL