The domestic production activities deduction has been repealed with the Tax Cuts and Jobs Act beginning in tax year 2018.
What are Domestic Production Gross Receipts?
Gross receipts include the following:
- Total sales
- Amounts received for services, not including wages received as an employee
- Income from incidental or outside sources (including sales of business property)
Generally, your entry should include your gross receipts from the following activities:
- Construction of real property that was performed in the U.S.
- Engineering or architectural services performed in the U.S.
- Any lease, rental, license, sale, exchange, or other disposition of any of the following:
- Tangible personal property, computer software, and sound recordings that you manufactured, produced, grew, or extracted in whole or in significant part within the United States,
- Any qualified film you produced, or
- Electricity, natural gas, or water you produced in the United States.
Your entry should not include income derived from:
- The sale of food and drinks you prepared at a retail establishment;
- Property you leased, licensed, or rented for use by any related person;
- The transmission or distribution of electricity, natural gas, or potable water; or
- The leasing, rental, license sale, exchange, or other disposition of land