DOMESTIC PRODUCTION DEDUCTION
We manage your review so that it is completed timely and in the most accurate and thorough manner possible to achieve the maximum supportable deduction.
Opportunity: If you are engaged in domestic production activities, you may be entitled to an additional federal tax deduction amounting to 9% of your net income.
Implementation: These determinations can be simple or complex, ThreeFive works directly with you to determine the “qualified production activities” and to see if you are eligible. ThreeFive will help you decide if an IRS-recommended statistical sample is necessary.
The key is determining if you are performing any of these qualifying activities:
a) Construction of, engineering or architectural services for real property.
b) Lease, rental, license, sale, exchange, or other disposition (manufacture, produce, grow, extract, install, develop, improve, or create) of any of the following:
i) Tangible personal property.
ii) Computer software.
iii) Sound recordings or film.
iv) Electricity, natural gas, or potable water
What portion of these activities were performed in the United States?
Result: The results for those that qualify is that 9% of the net income from these activities could be an additional deductible expense. Our billing is based on that result.