1040 Line 35 - Domestic Production Activities Deduction - Form 8903

[SpaceGhost]

Hello
I was interviewing a potential new CPA today (to take over my tax preparation from my current CPA) and they infomred me by looking at my 2015 DRAFT 1040 that I was not taking advantage of the DPAD in line 35.  I am an architect and was told by the potential CPA that the aforementioned subject deduction is applicable to my line of business.  I file as S-Corp and have no employees other than myself.  My question to you bright people, is anyone famiiar with this particular deduction?  My current CPA has not claimed it on the previous 5 years that I have been with them and haven't had an opportunity to review with them yet.  Lookking for some helpful feedback on this. 

Thanks in advance

[Wile E. Coyote]

I'm not an expert on the Section 199 domestic production activities deduction, but I understand that can be applicable to certain architectural services. With respect to the 50% W-2 wage limit, I imagine that the wages that you pay yourself may qualify, but you should confirm that.  The CPA should be able to provide you authority for the position.

[Spitfire]

Haven't done that one in a long time, but it does says on the instructions that applicable gross receipts include "2. Engineering or architectural services you perform in the United States in your engineering or architectural services trade or business for the construction of real property in the United States."

Even at the time I did DPAD projects, I never had an architecture client. Certainly worth looking into.