Sec. 199: domestic production activities deduction.
Despite the economic slowdown, manufacturing continues to play an important role in the American economy. Congress, concerned that U.S. manufacturing was lagging Lagging
Strategy used by a firm to stall payments, normally in response to exchange rate projections. behind foreign imports that in many cases benefited from foreign countries' subsidies and undercut undercut,
n 1. the portion of a tooth that lies between its height of contour and the gingivae, only if that portion is of less circumference than the height of contour.
2. U.S. producer prices, offered tax relief with the domestic production activities deduction. Since 2004, Sec. 199 has allowed as a deduction a percentage of qualifying production expenses, with "production" defined broadly and requiring only that it take place "in significant part" within the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . (1)
After starting at 3% of such costs, the deduction increased to 6% for tax years 2007-2009 and is 9% for 2010 and following years. It is designed to be the equivalent of a 3 percentage point reduction in the effective tax rate for U.S. manufacturers.(2) The amount of the deduction is limited to 50% of the taxpayer's W-2 wages attributable to domestic production gross receipts the total of the receipts, before they are diminished by any deduction, as for expenses; - distinguished from net profits.
See under Gross,
See also: Gross Receipt .
Because the domestic production activities deduction replaced the former foreign sales corporation Foreign Sales Corporation (FSC)
A special type of corporation created by the Tax Reform Act of 1984 that is designed to provide a tax incentive for exporting U.S.-produced goods. and extraterritorial ex·tra·ter·ri·to·ri·al
1. Located outside territorial boundaries: fishing in extraterritorial waters.
2. income provisions of the Code, U.S. manufacturers who did not benefit from those provisions' export tax benefits may overlook it. The domestic production activities deduction is available to a wide variety of U.S. taxpayers, not just those who export their products. This article describes eligibility for the deduction, its limitations, and how it is calculated.
To be eligible for the Sec. 199 deduction, taxpayers must have qualified production activities income (QPAI),(3) which is defined as domestic production gross receipts (DPGR DPGR Digital Photography Greece
DPGR Domestic Production Gross Receipts ) for a tax year minus cost of goods sold Cost of goods sold
The total cost of buying raw materials, and paying for all the factors that go into producing finished goods.
cost of goods sold and other expenses, losses, or deductions allocable al·lo·ca·ble
Capable of being allocated.
Adj. 1. allocable - capable of being distributed
distributive - serving to distribute or allot or disperse or properly attributable to those receipts.(4) DPGR comprises receipts obtained from the lease, rental, license, sale, exchange, or other disposition of qualifying production property (QPP QPP Quebec Pension Plan
QPP Quebec Provincial Police
QPP Qualifying Production Property
QPP Qualified Project Practitioner
QPP Quality Program Plan
QPP Quality Pork Processors, Inc. ), any qualified film, or electricity, natural gas, or potable potable /pot·a·ble/ (po´tah-b'l) fit to drink.
Fit to drink; drinkable.
fit to drink. water produced by the taxpayer in the United States. DPGR may also be derived from construction of real property or engineering/architectural services in the ordinary course of business in the United States by taxpayers that actively conduct a trade or business of construction or engineering/architectural services, respectively. (5)
QPP is property produced by manufacturing, producing, growing, or extracting (MPGE MPGE Manufactured, Produced, Grown, or Extracted ) activities performed in whole or in significant part within the United States. (6) QPP consists of:
* Tangible personal property;
* Any computer software; and
* Sound recordings. (7)
Under Regs. Sec. 1.199-3(e), MPGE activities include:
* Manufacturing from scrap, salvage salvage, in maritime law, the compensation that the owner must pay for having his vessel or cargo saved from peril, such as shipwreck, fire, or capture by an enemy. Salvage is awarded only when the party making the rescue was under no legal obligation to do so. , or junk junk
Classic Chinese sailing vessel of ancient unknown origin, still in wide use. High-sterned, with a projecting bow, the junk carries up to five masts on which are set square sails consisting of panels of linen or matting flattened by bamboo strips. material as well as from new or raw material;
* Processing, manipulating, or refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar ;
* Changing the form of the property;
* Combining or assembling;
* Cultivating soil;
* Raising livestock;
* Mining minerals;
* Storage and handling activities connected with certain agricultural products; and
* Installing QPP, if the taxpayer also engages in other MPGE activity with respect to the QPP.
MPGE activities do not include:
* Minor assembly; and
* Installation of QPP, if no other MPGE occurs with respect to the QPP.
Safe harbor Safe Harbor
1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated.
2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. : If the combination of direct labor and overhead used in MPGE activities totals 20% or more of the QPP's cost of goods sold (COGS These are all the Cogs found in Disney's Toontown Online. Names that are moved forward are leaders of the HQ of that specific Cog type. Bossbots
Of, relating to, or being a long-term tangible asset that is subject to depreciation. basis in the QPP, the taxpayer is deemed to have engaged in MPGE activities to produce QPP. (8)
Before computing computing - computer the Sec. 199 deduction, the taxpayer should determine if the entity is a member of a new attribution at·tri·bu·tion
1. The act of attributing, especially the act of establishing a particular person as the creator of a work of art.
2. entity created by Sec. 199: an expanded affiliated group (EAG EAG - Extended Affix Grammar ). Having made this determination, the taxpayer can calculate the two components of the Sec. 1.99 formula:
* Taxable income, as modified by Sec. 199 criteria; and
EAGs generally follow the rules of Sec. 1504, governing affiliated groups, except that "50%" is substituted for "80%."(9) In effect, the EAG can encompass a larger group of entities than the normal rules of attribution. Exhibit 1 on p. 324 illustrates the EAG relationship compared with a Sec. 1504 affiliated group. Each EAG member must be engaged in the actual conduct of a trade or business. All EAG members must be considered in the Sec. 199 deduction. In effect, Sec. 199 becomes a consolidated deduction subject to allocation.
Modified Taxable Income
For corporations, taxable income for Sec. 199 purposes is determined without regard to the Sec. 199 deduction. In the case of corporate alternative minimum tax, alternative minimum taxable income will be used in place of taxable income. (10)
For individuals, adjusted gross income is substituted for taxable income in the Sec. 199 calculation. For this purpose, adjusted gross income is determined before applying Sec. 199 and after applying:
* Sec. 86: Social Security benefits;
* Sec. 135: Income from U.S. bonds used to pay higher education tuition and fees;
* Sec. 137: Adoption assistance programs;
* Sec. 219: Qualified retirement savings;
* Sec. 221: Interest on education loans;
* Sec. 222: Qualified tuition and related expenses; and
* Sec. 469: Passive activity losses and credits. (11)
QPAI consists of DPGR for a tax year minus COGS and other expenses, losses, or deductions allocable or properly attributable to those receipts. (12) Taxable receipts and expenses are to be allocated in a "reasonable" manner to produce income attributable to QPAI.
A reasonable method of allocation has the following characteristics:
* Whether the taxpayer uses the most accurate information available;
* The relationship between gross receipts and the method used;
* The accuracy of the method chosen as compared with other possible methods;
* Whether the taxpayer uses the method for internal management or other business purposes;
* Whether the method is used for other federal or state income tax purposes;
* The time, burden, and cost of using alternative methods; and
* Whether the taxpayer applies the method consistently from year to year.(13)
Exhibit 2 gives an example of the QPAI computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking. . The QPAIs in this example total $1,165 (QPAI 1 + QPAI 2).
Exhibit 2: QPAI Computation Facts: Taxpayer is not a member of an EAG. All of taxpayer's MPGE activities are in two distinct products. Adjusted basis of assets attributable to: QPAI1 3,000 QPAI2 4,000 Non-QPAI 1,000 8,000 activities Square footage attributable to: QPAI1 2,500 QPAI2 1,500 Non-QPAI 1,000 5,000 activities Computations Taxable Allocation QPAM basis Receipts Given attributable to: QPAI1 6,500 6,500 QPAI 2 4,500 Non-QPAI 4,000 15,000 activities COGS Given attributable to: QPAI1 (2,500) (2,500) QPAI 2 (1,0001 Non-QPAI (2,5001 (6,000) activities Non-COGS Given expenses attributable to: QPAI1 (1,500) (1,500) QPAI 2 (1,000) Non-QPAI (500) (3,000) activities Interest (1,000) (1,000) Adjusted (375) (500) expense not basis of included in assets COGS* Headquarters (1,200) (1,200) Square (600) overhead footage expense [dagger] Selling expenses related to all of taxpayer's gross income attributable to: QPAI1 (1,200) (1,200) QPAI 2 (800) (2.000) Net income 1,800 325 1,165 * Allocation of interest expense Adjusted % Interest Allocation basis of expense assets attributable to: QPAM 3,000 37.50% 1,000 375 QPAI 2 4,000 50.00% 1,000 500 Non-QPAI 1,000 12.50% 1,000 125 activities 8,000 100.00% 1,000 [dagger] Allocation of headquarters overhead expense Square % Overhead Allocation footage expense attributable to: QPAI1 2,500 50.00% 1,200 600 QPAI 2 1,500 30.00% 1,200 360 Non-QPAI 1,000 20.00% 1,200 240 activities 5,000 100.00% 1,200 Adjusted basis of assets attributable to: QPAI1 QPAI2 Non-QPAI activities Square footage attributable to: QPAI1 QPAI2 Non-QPAI Non-QPAI activities Computations QPAI 2 activities Receipts attributable to: QPAI1 QPAI 2 4,500 Non-QPAI 4,000 activities COGS attributable to: QPAI1 QPAI 2 (1,000) Non-QPAI (2,500) activities Non-COGS expenses attributable to: QPAI1 QPAI 2 (1,000) Non-QPAI (500) activities Interest (125) expense not included in COGS * Headquarters (360) (240) overhead expense + Selling expenses related to all of taxpayer's gross income attributable to: QPAI1 QPAI 2 (800) Net income 840 635 * Allocation of interest expense Adjusted basis of assets attributable to: QPAM QPAI 2 Non-QPAI activities [dagger] Allocation of headquarters overhead expense Square footage attributable to: QPAI1 QPAI 2 Non-QPAI activities
Taxpayers with Oil-Related QPAI
Sec. 199 defines "oil-related qualified production activities income" as the QPAI attributable to the production, refining, processing, transportation, or distribution of oil, gas, or any primary product derived from these substances.(14) For tax years beginning after 2009, if a taxpayer has oil-related QPAI, the Sec. 199 deduction is reduced by 3% of the lesser of:
* The taxpayer's oil-related QPAI for the tax year;
* The taxpayer's QPAI for the tax year; or
* Taxable income (determined without regard to Sec. 199). (15)
In the Exhibit 2 calculation, if QPAI 1 were oil related, the Sec. 199 deduction would be reduced by $10 (rounded), which is 3% of the lower of QPAI 1 ($325), the total QPAI ($1,165), or total taxable income ($1,800).
Understanding DPGR is critical for the W-2 wage limitation because the Sec. 199 deduction is limited to 50% of the taxpayer's W-2 wages attributable to DPGR activities.
Gross receipts are receipts for the tax year, as recognized by the taxpayer's normal method of accounting as used for income tax purposes. (16) They are determined on an item-by-item basis rather than by department, plant, or product line. (17) For this purpose, "items" are those goods offered for sale in the normal course of a taxpayer's trade or business. If property is sold by weight or volume, industry custom will determine the item. (18) For engineering, architectural, or construction activities, any reasonable method may be used to determine an item. (19)
For purposes of Sec. 199, gross receipts include:
* Income from services;
* Income from investments;
* Interest, dividends, and other such items, regardless of whether received in the taxpayer's ordinary course of business; or
* The amount of sales tax sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. collected, if the tax is imposed on the seller and not the purchaser of the goods or services.
Gross receipts exclude:
* Principal received on payment of a liability;
* Proceeds from a nonrecognition transaction (e.g., Sec. 1031), except for the gain;
* Sales tax received from customers, if the tax is legally imposed on the purchaser and the seller is merely a collection agent; or
* The sale of food and beverages prepared by the taxpayer at a retail establishment.(20)
The taxpayer must allocate receipts between DPGR and non-DPGR using a reasonable method of allocation.(21) The term "reasonable" implies that the information is readily available and that the taxpayer can identify DPGR without "undue time and expense." This allocation is necessary because W-2 wages must be apportioned ap·por·tion
tr.v. ap·por·tioned, ap·por·tion·ing, ap·por·tions
To divide and assign according to a plan; allot: "The tendency persists to apportion blame as suits the circumstances" between activities relating to relating to relate prep → concernant
relating to relate prep → bezüglich +gen, mit Bezug auf +acc domestic and nondomestic production. The allocation affects the limitation by imposing a ceiling for the Sec. 199 deduction.
If the taxpayer's accounting method recognizes partial advance payments as income, use of historical data in subsequent years constitutes a reasonable method. However, if historical data are updated, those revisions must be reflected in the Sec. 199 calculation in the year of update and thereafter. (22)
A taxpayer using the percentage of completion method must be able to substantiate To establish the existence or truth of a particular fact through the use of competent evidence; to verify.
For example, an Eyewitness might be called by a party to a lawsuit to substantiate that party's testimony. that the DPGR/non-DPGR allocation is reasonable. (23)
De minimis An abbreviated form of the Latin Maxim de minimis non curat lex, "the law cares not for small things." A legal doctrine by which a court refuses to consider trifling matters. rules exist for determining DPGR. If less than 5% of gross receipts are non-DPGR, the taxpayer may generally treat all receipts as DPGR. If 5% or more of gross receipts are non-DPGR, the taxpayer must allocate receipts between DPGR and non-DPGR. (24)
The following rules are used to determine the entity level for gross receipts allocation:
* If the taxpayer is a member of an EAG but not a member of a consolidated group, determination is made at the corporate level.
* If the taxpayer is a member of a consolidated group, determination is made at the consolidated group level.
* If the taxpayer is an S corporation, partnership, trust, estate, or other passthrough entity, determination is made at the passthrough entity level.
* In the case of an owner of a passthrough entity, determination is made at the owner level, taking into account the gross receipts of all the owner's trades or businesses, including the passthrough entity.(25)
DPGR generally does not include any gross receipts of the taxpayer derived from property leased, licensed, or rented by the taxpayer for use by any related person. An exception occurs if QPP or qualified film is leased or rented to a related taxpayer and in turn is leased or rented for ultimate use by an unrelated party. In that case, the gross receipts will qualify as DPGR. The same exception would also apply to a qualified film that a taxpayer licenses or relicenses for ultimate use by an unrelated third party. (26)
A qualified film is any motion picture film or videotape videotape
Magnetic tape used to record visual images and sound, or the recording itself. There are two types of videotape recorders, the transverse (or quad) and the helical. in which 50% or more of the total compensation relating to its production is for services performed in the United States by actors, production personnel, directors, and producers. The term includes copyrights, trademarks, or other intangibles of the film. The methods and means of distributing a qualified film do not hinder hin·der 1
v. hin·dered, hin·der·ing, hin·ders
1. To be or get in the way of.
2. To obstruct or delay the progress of.
v.intr. the Sec. 199 deduction. (27) Qualified films do not include films depicting actual sexually explicit conduct. (28)
The wages comprising the 50% limitation must be attributable to DPGR and must have been correctly reported to the Social Security Administration within 60 days of the due date to qualify for Sec. 199. W-2 wages include wages actually paid, elective elective
non-urgent; at an elected time, e.g. of surgery.
elective adjective Referring to that which is planned or undertaken by choice and without urgency, as in elective surgery, see there noun Graduate education noun deferrals actually made,(29) deferred compensation actually deferred under Sec. 457, and designated contributions to a Roth IRA Roth IRA
An individual retirement plan that bears many similarities to the Traditional IRA. Contributions are never deductible, and qualified distributions are tax-free. A qualified distribution is one that is taken at least five years after the taxpayer established his/her first made after December 31, 2005.(30) "Correctly reported" includes being reported on Forms W-2, Wage and Tax Statement (or W-2c, Corrected Wage and Tax Statement), and W-3, Transmittal of Wage and Tax Statements (or W-3c, Transmittal of Corrected Wage and Tax Statements). (31)
If an original payroll tax Payroll Tax
Tax an employer withholds and/or pays on behalf of their employees based on the wage or salary of the employee. In most countries, including the U.S., both state and federal authorities collect some form of payroll tax. return is filed within 60 days of the due date and a corrected return is timely filed, W-2 wages will consist of the amounts shown on the corrected return. If the original return is timely filed but the corrected return is filed later than within 60 days of the due date, any increases will not be considered for Sec. 199 purposes, but any decreases must be taken into account. If the original return is not timely filed within 60 days of the due date, the amounts on a corrected return are disregarded dis·re·gard
tr.v. dis·re·gard·ed, dis·re·gard·ing, dis·re·gards
1. To pay no attention or heed to; ignore.
2. To treat without proper respect or attentiveness.
n. for Sec. 199 purposes. (32)
Originally, all W-2 wages were included in the 50% limitation. After May 17, 2006, wages included only the compensation allocable to DPGR. A taxpayer may use any allocation method as long as it is reasonable.(31) The effect of this change is to lower the ceiling of the deduction.
If the employer listed on the W-2 form does not have control of the payment of wages, or if the taxpayer is paying wages as an agent of another taxpayer, those wages will not be counted as W-2 wages for purposes of Sec. 199. (34)
In a short tax year, only the wages actually paid, elective deferrals actually made,(35) and deferred compensation actually deferred under Sec. 457 during the short year may be counted for Sec. 199 purposes.(36)
In the event of an acquisition or disposition of a business or major portion of a business, wages will be allocated between the predecessor and successor businesses.(37) Duplication duplication /du·pli·ca·tion/ (doo-pli-ka´shun)
1. the act or process of doubling, or the state of being doubled.
2. of wages between tax years or different taxpayers is not permitted.(38)
For taxpayers having a noncalendar-year end, the term "W-2 wages" means wages paid during the calendar year ending during the taxpayer's tax year, as stated in Regs. Sec. 1.199-2(e)( 1). A taxpayer may determine the amount of W-2 wages that is properly allocable to DPGR for a tax year by multiplying the amount of W-2 wages for the tax year by the ratio of the taxpayer's wage expense included in calculating QPAI (as defined in Regs. Sec. 1.199-1(c)) for the tax year to the taxpayer's total wage expense used in calculating the taxpayer's taxable income (or adjusted gross income, if applicable) for the tax year (Regs. Sec. 1.199-2(e)(2)(ii)).
Computation of the Deduction
To compute To perform mathematical operations or general computer processing. For an explanation of "The 3 C's," or how the computer processes data, see computer. the Sec. 199 deduction, the taxpayer determines the lesser of QPAI or taxable income, as modified. The smaller number is then multiplied by the appropriate percentage:
* 3% for tax years beginning in 2005 or 2006;
* 6% for tax years beginning in 2007, 2008, or 2009; or
* 9% for tax years beginning in 2010 and thereafter.
This result is then limited by 50% of W-2 wages attributable to DPGR.
Example: In 2010, A Corp. has taxable income of $210,000, QPAI of $145,000, and DPGR wages of $26,000. The Sec. 199 deduction would be $13,000 ($145,000 x 9% = $13,050, limited by $26,000x50% = $13,000).
Had the year been 2007, the applicable percentage would have been 6%, and the Sec. 199 deduction would have been $8,700 ($145,000 x 6% = $8,700). The wage limitation of $13,000 would have been irrelevant. Exhibit 3 shows a Sec. 199 computation.
Exhibit 3: Sec. 199 computation Facts: Corporation has year end of 4/30/11 Not a member of an EAG Engages in activities that generate both DPGR and non-DPGR W-2 wages in 2010 2010 3,000 calendar-year W-2 wages Total wages 1,800 for year ending 4/30/11 Wages Total Receipts income QPAI Total QPAI DPGR 3,000 3,000 Non-DPGR 3,000 6,000 COGS DPGR Wages (200) 200 200 Nonwages (400) (600) (600) Non-DPGR Wages (600) (1,800) 600 Nonwages (1,200) Other deductions* Wages (1,000) (500) 1,000 500 Nonwages (1,220) (2,220) (610) Total 1,380 1,290 1,800 700 * Allocation to QPAI based on ratio of DPGR receipts to total receipts QPAI wage computation 700 [division 3,000 = 1,167 sign]1,800 x Sec. 199 computation Taxable income 1,380 (Tl) QPAI 1,290 Lesser of(Tl) or QPAI 1,290 x9% 116 Wages limitation 1,167x50% 584 = Sec. 199 116 deduction
Allocation of the Deduction
Pending the issuance of regulations, the allocation of the Sec. 199 deduction is based on each EAG member's portion of QPAI.(39) See Exhibit 4, adapted from the regulations.
Exhibit 4: Allocation of Sec. 199 deduction Corporations A and B are members of an EAG. Assume these facts for 2010: A B Taxable 1,380 1,710 income QPAI 1,455 905 Wages 1,042 400 attributable to DPGP. Sec. 199 calculation A S Total Taxable 1,380 1,710 3,090 income (Tl) QPAI 1,455 905 2,360 Lesser of TI % 2,360 212 or QPAI x9 Wage x 50% 1,042 400 1,442 721 limitation Wage limitation not relevant Allocation of Sec. 199 deduction QPAI 1,455 905 2,360 62% 38% 100% Total Sec. 212 212 212 199 deduction Sec. 199 131 81 212 deduction allocation
This article presents an overview of the domestic production activities deduction. In addition to the statute, nine regulations spell out in detail topics such as expanded affiliated groups, domestic production gross receipts, qualified production activities income, special rules for agricultural and horticultural hor·ti·cul·ture
1. The science or art of cultivating fruits, vegetables, flowers, or ornamental plants.
2. The cultivation of a garden. cooperatives and passthrough entities, and the W-2 limitation (both before and after May 17, 2006).
Practitioners should be aware of the Sec. 199 deduction and be comfortable with its calculations so clients can take full advantage of its provisions. In some cases, refinements will have to be made to the taxpayer's accounting system in order to capture the required data--e.g., DPGR versus non-DPGR and the related wages.
RELATED ARTICLE: EXECUTIVE SUMMARY
* The domestic production activities deduction is generally calculated as a percentage of a taxpayer's qualified production activities income (QPAI). QPAI is defined as domestic production gross receipts (DPGR) for a tax year less cost of goods sold and other expenses, losses, or deductions allocable or properly attributable to those receipts.
* DPGR are receipts from the lease, rental, license, sale, exchange, or other disposition of qualifying production property (QPP) and certain other property. QPP is property produced by manufacturing, producing, growing, or extracting activities performed in whole or in significant part within the United States, including tangible personal property, any computer software, and sound recordings.
* The amount of the deduction is limited to 50% of the taxpayer's W-2 wages attributable to DPGR.
(1) Sec. 199 was enacted by the American Jobs Creation Act of 2004, P.L. 108-357, and modified by the Tax Increase Prevention and Reconciliation Act of 2005, P.L. 109-222.
(2) Joint Committee on Taxation, General Explanation of Tax Legislation Enacted in the 108th Congress (JCS-5-05) (May 2005).
(3) Sec. 199(a).
(4) Sec. 199(c)(1).
(5) Sec. 199(c)(4)(A).
(6) Sec. 199(c)(4)(A)(i)(I).
(7) Sec, 199(c)(5).
(8) Regs. Sec. 1.199-3(g)(3)(i).
(9) Sec. 199(d)(4)(B).
(10) Sec. 199(d)(6)(B).
(11) Sec. 199(d)(2).
(12) Sec. 199(c)(1).
(13) Regs. Sec. 1.199-4(b)(2)(i).
(14) Sec. 199(d)(9)(B).
(15) Sec. 199(d)(9)(A).
(16) Regs. Sec. 1.199-3(c).
(17) Regs. Sec. 1.199-3(d)(1).
(18) Regs. Sec. 1.199-3(d)(2)(ii).
(19) Regs. Sec. 1.199-3(d)(2)(iii).
(20) Regs. Sec. 1.199-3(c).
(21) Regs. Sec. 1.1 99-3(d)(1).
(22) Regs. Sec. 1.199-(e)(1).
(23) Regs. Sec. U199-1(e)(2).
(24) Regs. Sec. 1.199-1 (d)(3).
(25) Regs. Sec. 1.199-1(d)(3)(i).
(26) Regs. Sees. 1.1993(b)(1) and (2).
(27) Sec. 199(c)(6).
(28) Sec. I99(c)(6) excludes property subject to the record-retention requirement of 18 U.S.C. $2257, which applies to various products that contain "visual depictions ... of actual sexually explicit conduct."
(29) Sec Sec. 402(g)(3).
(30) Regs. Sec. 1.199-2(e)(1).
(31) Regs. Sec. 1.199-2(a)(3)(i).
(32) Regs. Sees. 1.1 99-2(a)(3)(ii) and (iii).
(33) Regs. Sec. 1.199-2(e)(2).
(34) Regs. Sec. 1.199-2(a)(2).
(35) See Sec. 402(g)(3).
(36) Regs. Sec. 1.199-2(b).
(37) Regs. Sec. 1.199-2(c).
(38) Regs. Sec. 1.199-2(d).
(39) Sec. 199(d)(4)(C).
Sec. 199 acronyms
DPGR--domestic production gross receipts
EAG--expanded affiliated group
MPGE--manufacturing, producing, growing, or extracting
QPAI--qualified production activities income
QPP--qualifying production property
Phillip Schurrer is an instructor in accounting and: taxation at Bowling Green State University Bowling Green State University, at Bowling Green, Ohio; coeducational; chartered 1910 as a normal school, opened 1914. It became a college in 1929, a university in 1935. in Bowling Green Bowling Green.
1 City (1990 pop. 40,641), seat of Warren co., S Ky., on the Barren River; inc. 1812. It is a shipping and marketing center for an area producing tobacco, corn, livestock, and dairy items. , OH. for more information about this article, contact Mr. Schurrer at firstname.lastname@example.org.
By: Phillip J. Schurrer, CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. , MBA