The Domestic Production Activities Deduction, also referred to as DPAD or Section 199, is a deduction for taxpayers with profitable qualified activities in the United States. Manufacturers, producers of software, engineering firms, and even contractors who build real property are all eligible for a deduction of up to 9 percent of income. The DPAD can result in significant tax savings for those who qualify. Our tax specialists can help navigate the complicated Section 199 regulations to calculate your deduction while staying in compliance with IRS requirements.
Our team of experts can work with you to calculate your DPAD. This includes analysis of required item-by-item sales reports, safe harbor analysis, facts and circumstances qualification, and allocation of administrative and overhead costs. Our DPAD studies are designed to leverage our experience and tools to maximize your DPAD tax savings while balancing risk, value, and cost.