The Code Sec. 199 Domestic Production Activities deduction has been one of the hottest areas of tax planning since Congress passed the 2004 Jobs Act. When using Sec. 199 for S corps, partnerships and other passthrough entities, tax planners must combine Sec. 199 rules and planning with sound understanding of the rules and planning techniques for those specific entities. Dealing with distributive shares of profits and losses and other practical questions must become part of the Sec. 199 planning process, notes James M. Kehl, CPA. Mr. Kehl has prepared a thorough review of how to put Sec. 199 to work in CCH’s just-released book-Practical Guide to the Sec. 199 Deduction. Chapter 9 of this book, available at the link below, explains how to use Sec. 199 with passthroughs and includes numerous examples and sample calculations to show you how to apply these new rules.
* * * * *
This story is from the CCH’s monthly Focus on Tax newsletter, which provides advise and guidance on federal and state tax issues for tax and accounting professionals.
Read this article from CCH’s Journal of Taxation of Financial Products.