litch: (Default)
[personal profile] litch
Great gods I want to strangle george bush.

I'm doing my taxes and in the deduction there is a line (#35 on the 1040) for something called "Domestic Production Activities Deduction" which allows one to deduct 6% of the revenue for "domestic production activities". But what dear reader are "domestic production activities"? It includes construction of real property, engineering/architecture associated with such construction, income from production of a film, electricity, natural gas, or potable water, or income from "qualifying production property". What are those? tangible personal property, sound recordings, or computer software.

So, I derive revenue from the production of computer software, I should qualify right?

No, according to the instructions for form 8903 "Customer and Technical support is generally not included".

Which in my case means I just got screwed out of a $2272 deduction.

Date: 2009-04-14 11:58 pm (UTC)
From: [identity profile]
Thing is, it's not your company that makes you able to take this deduction. If you owned the company, you would get it. Yeah, sux but that's what it is.

We couldn't take it either and Bruce builds computers, and keeps the production computers running. We had another well sunk on property in Oklahoma for natural gas (dry, unfortunately) and we didn't get to take that either; the company that actually did the work did.

The rules are what Congress makes them.

Date: 2009-04-15 01:15 am (UTC)
From: [identity profile]
I think I would qualify since I am a self-employed sub-contractor.

The way it is written just pisses me off no-end. It's incredibly overly complicated and the only way to really take advantage of it is if you are company that can hire a tax lawyer who really knows their shit.

It's more republican payback for rich fatcats.

Date: 2009-04-15 02:41 am (UTC)
From: [identity profile]

Try a small gas well driller in SE Oklahoma. Or a house hauler in the Texas Panhandle.

There are a LOT more smaller businesses who are taking this than "republican fatcats" out there.

If you are filing the paperwork yourself on taxes instead of having the company you are working with file it, you should be able to take that deduction because you are "building" and maintaining the services. I would seek out a tax lawyer just to make sure. Or take it and then see if they challenge it.

Date: 2009-04-15 07:05 am (UTC)
From: [identity profile]
"Or take it and then see if they challenge it."



litch: (Default)

May 2009

      1 2
3 45 6789

Most Popular Tags

Style Credit

Expand Cut Tags

No cut tags
Page generated Sep. 22nd, 2017 06:26 am
Powered by Dreamwidth Studios