DPGR

(redirected from Domestic Production Gross Receipts)
AcronymDefinition
DPGRDomestic Production Gross Receipts
DPGRDigital Photography Greece
References in periodicals archive ?
QPAI is the excess of the taxpayer's domestic production gross receipts (DPGR) over the sum of (i) the cost of goods sold (CGS) that are allocable to such DPGR; and (ii) other expenses, losses or deductions, which are properly allocable to such DPGR.
Qualified production activities income is calculated as the excess of domestic production gross receipts (DPGR) over the allocated cost of goods sold, direct costs, and allocable indirect costs.
According to PricewaterhouseCoopers, pulling the W-2 wage component from cost of goods sold and from other costs properly allocable to domestic production gross receipts will be time-consuming.
While this may look simple, it may require some careful analysis to determine, for example, which receipts qualify as domestic production gross receipts or how to allocate costs between activities that generate domestic production gross receipts and those that produce other types of income.
Domestic production gross receipts are the gross receipts of a taxpayer that are derived from the sale, exchange, or disposition of qualified production property that was manufactured, produced, grown, or extracted by the taxpayer in whole or in significant part within the United States.
In general, a taxpayer's QPAI equals the excess of its domestic production gross receipts (DPGR) over (1) the sum of the cost of goods sold allocable to such receipts and (2) other expenses, losses, or deductions that are properly allocable to such receipts.
Once a taxpayer identifies qualified production activities, it calculates domestic production gross receipts (DPGR) and allocates them between qualified and nonqualified production activities.
IRC section 199(c)(7) states that domestic production gross receipts do not include any gross receipts of the taxpayer derived from property leased, licensed, or rented by the taxpayer for use by any related person.
A simpler compliance method might be beneficial, she said, especially where the shrink-back method must be applied to determine whether receipts for an item qualify as domestic production gross receipts (DPGR).
In general, a taxpayer's QPAI equals the excess of its domestic production gross receipts (DPGR) over the sum of the cost of goods sold allocable to those receipts and other expenses, losses, or deductions that are properly allocable to those receipts.
199(b)(2), for tax years beginning after May 17, 2006, only wages allocable to domestic production gross receipts are taken into account in determining the 50% of W-2 wages limitation amount.
The proposed regulations generally provide that gross receipts derived from the performance of services do not qualify as domestic production gross receipts (DPGR).
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