199 deduction

Collapse
X
Collapse
 
  • Page of 1
  • Time
  • Show
Clear All
new posts
Previous template Next
  • Florida_EA
    Senior Member
    • Aug 2017
    • 153
    #1

    199 deduction

    Client manufactures products overseas and sells them in the US. The only service (design services) work that is done is that of a full time engineer in the US. Salaries allocated to the engineer is 10% of total salaries paid in the US and the salaries of the engineer is allocated to the products. Under Section 199 can some of the sales (10%) be allocated to DPAD?
    Tags: None
    • kathyc2
      Senior Member
      • Feb 2015
      • 1945
      #2
      I don't believe so. For engineering fees to be considered, it needs to be for real property located in US.

        Comment

        Previous template Next

        Disclaimer

        Collapse

        This message board allows participants to freely exchange ideas and opinions on areas concerning taxes. The comments posted are the opinions of participants and not that of Tax Materials, Inc. We make no claim as to the accuracy of the information and will not be held liable for any damages caused by using such information. Tax Materials, Inc. reserves the right to delete or modify inappropriate postings.

        Working...