Domestic Production Activities Deduction Rate Increases to 9% in 2010 – Maybe the Complexity is Now Worth It?


Via the Journal of Accountancy

The Domestic Production Activities Deduction under IRC Section 199 allows for a deduction of 9% of income from eligible activities in 2010.  This deduction is a valuable tax break for qualified businesses.  However, the reporting for the deduction, as well as the rules and regulations themselves can be mind numbingly complex.

Given the deduction rate increase, we thought it would be a good idea to remind our clients about the deduction.  The Journal of Accountancy has published a introduction to the DPAD.

Please give us a call if this article brings up strategies you would like to consider in more detail.

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