The Domestic Production Activities Deduction is a deduction for manufacturers and is intended to provide tax incentives for businesses that produce goods or work in the United States rather than sending that work overseas.
As a dentist or orthodontist, how do I qualify? Is part of your revenue derived from using Cerec or CAD/CAM, or from retainers or other appliances produced in-house? If so, then you potentially qualify.
The deduction is equal to 9% of the Qualified Production Activities Income (QPAI) or taxable income if lower. The deduction also can not exceed 50% of the wages related to production activities.
For more information, contact Justin Work, CPA at 314-576-1350.