Discussion:Domestic Production Activities

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Discussion Forum Index --> Tax Questions --> Domestic Production Activities

Lucia (talk|edits) said:

3 February 2006
I just finished reviewing the rules for the Section 199 deduction (Domestic Production Activities). I have a sole proprietor client that performs consulting mechanical engineering services for architectural firms and industrial clients. Does the gross engineering fees qualify for Domestic production gross receipts. I think so. I also think that all of the Schedule C costs would be the Directly allcable deductions. The Schedule C has substantial W-2 wages so there is no limit at that point.

Retrieved from "http://www.TaxAlmanac.org/index.php/User_talk:Lucia"

Riley2 (talk|edits) said:

3 February 2006
Are his services directly related to construction performed in the U.S.?

Lucia (talk|edits) said:

6 February 2006
yes they are.

WESR (talk|edits) said:

7 February 2006
hi then if all revenue(DPGR) qualifes as construction related, it can be assumed all expenses are related to the DPGR. his bottem line sch c is your DPAI for the 3% deduction. bye

To join in on this discussion, you must first log in.
Personal tools