Discussion:Domestic Production Activites Deduction

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Discussion Forum Index --> Tax Questions --> Domestic Production Activites Deduction

Bruschi (talk|edits) said:

15 January 2007
Domestic Production Activites Deduction

Does this apply to schedule C general contractors who build residential and buisness properties?

How about Engineers and architects that are employees of firms that construct these properties?

How about engineers and architects that design for outside construction firms?


Solomon (talk|edits) said:

15 January 2007
I would say yes, no (can't apply to an employee - yes, if you mean to the firm), and yes. I might add, in your first question, if the general contractor pays a subcontractor, the subcontractor then qualifies and the payment to the subcontractor is cost of goods for the general contractor.

Dennis (talk|edits) said:

15 January 2007
There is a difference between apply and benefit. Given the dependence on wages in the calculation, Schedule C's are not treated favorably.

Solomon (talk|edits) said:

16 January 2007
Final and Temp. Regs.

Kevinh5 (talk|edits) said:

17 January 2007
For the EAS (Engineering and Architectural Services) to qualify as QPAI, they have to be related to real estate construction in the US. Not all EAS income will qualify.

Waynec (talk|edits) said:

17 January 2007
I saw another post referring it to a "credit" is there such an animal this year?

Kevinh5 (talk|edits) said:

17 January 2007
It is not a credit. For individuals, it is taken as an adjustment to income. For C-corps, it is taken as a deduction before figuring tax.

Calling it a credit would be a misnomer.

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