Skip to main content

Legal

Tax & Accounting

Trade & Supply

Risk & Fraud

News & Media

Books

Developers

Federal input screens

Screen 8903 - Domestic Production Deduction (1040)

Source data entry
The UltraTax CS Source Data Entry utility enables you to enter data on facsimile versions of forms your clients submit for the preparation of their tax returns. Once the facsimile forms are completed, you can export the data to transfer it into your client data files via the data sharing feature. For more information including a list of available facsimiles, see UltraTax CS Source Data Entry overview.

Domestic Production Deduction

The
Description
,
Unit
,
Form
,
TSJ
, and
State
 fields automatically complete for the 8903 screens associated with an activity. Use this screen for only the fiscal year-end entities that have pass-through 2017 amounts. This deduction was repealed for tax years after December 31, 2017. For 2018 (and later) cooperatives DPAD, use the activity's QBID data entry section.
For the 8903 screens associated with an activity, this field automatically generates from that activity’s entity name (K1 or K1T screen). This field is mandatory.
Press
F4
 from this field and select the appropriate state postal code from the list.
See State fields for more information.

Current Year Deduction

Include any oil-related amounts in both the oil-related field and in the total field. Separate statements will print for each of the following lines on Form 8903: 1, 2, 3, 16, and 23. The statements will detail the amounts accumulated from multiple units of the 8903 screen.
If using the small business simplified overall method, the total on Form 8903, line 4 includes this amount, combined with amounts from the
Deductions and losses allocable or ratably apportioned to DPGR
 field.
If using the small business simplified overall method, the total on Form 8903, line 4 is the sum of this amount and amounts from the
Allocable cost of goods sold
 field.
Enter the total W-2 wages paid by the employer (taxpayer) that are allocable to domestic production gross receipts. This amount is used to calculate the W-2 wage limitation. The Domestic Production Activities Deduction is limited to 50 percent of the W-2 wages paid.
Enter the Domestic Production Activities Deduction amount reported on Form 1099-PATR, box 6. For 2018 (and later) cooperatives DPAD, use the activity's QBID data entry section.
If this field is marked, all allocable costs of goods sold and allocable deductions and losses entered in the 8903 screen will be combined and reported on Form 8903, line 4.
A ratio of the losses currently allowed for tax purposes over the current loss is multiplied by the amount entered in the
Allocable cost of goods sold
 and
Deductions and losses allocable or ratably apportioned to DPGR
 fields. You can enter a zero in this field to not apply the loss allowed percentage.

Prior Year Suspended Deduction

These amounts automatically proforma from the prior year. Include any oil-related amounts in both the oil-related field and in the total field.
The entity's prior year suspended loss percentage calculates using a ratio (the entity's suspended basis, at-risk, and/or passive activity suspended losses allowed in the current year over the total suspended amounts) and applies to the suspended deduction amounts. You can enter a zero here to not apply this percentage.
Chat now

error-icon

Triva isn't available right now.

Check out the support page for our phone number and hours

error-close