Identify the correct statement below regarding the domestic production activities deduction (DPAD). a. Qualified production activities income

Question:

Identify the correct statement below regarding the domestic production activities deduction (DPAD).
a. Qualified production activities income (QPAI) is calculated by applying a percentage to net income from an IRS rate table based on specific criteria.
b. The DPAD cannot exceed attributable W–2 wages paid.
c. A sole proprietorship cannot claim the DPAD, but a partnership or an S corporation with more than one shareholder can.
d. Taxable income for the purposes of calculating or amending the DPAD includes any net operating loss (NOL) deduction, such as an NOL carryforward or NOL carryback.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...