QPAI

(redirected from Qualified Production Activities Income)
AcronymDefinition
QPAIQualified Production Activities Income (taxation)
References in periodicals archive ?
The DPAD is calculated as 9% of the qualified production activities income (net of expenses), but is subject to two important limitations: 1) 9% of taxable income for C corporations, or AGI for sole proprietors, owners of partnerships and LLCs, and S corporations; and 2) 50% of Form W-2 wages paid to employees involved in the qualified production activity.
199(a) permits a qualifying taxpayer a deduction for the lesser of 9% of qualified production activities income (QPAI) for the tax year or taxable income (determined without regard to Sec.
The original version of the deduction was phased in through 2009 and is currently equal to 9% of the lesser of the taxpayer's qualified production activities income (QPAI) or the taxpayer's taxable income.
199-1(c)(1) states that taxpayers are required to determine qualified production activities income on an item-by-item basis--not on a division-by-division, product line-by-product line or transaction-by-transaction basis.
The deduction is computed by taking the lesser of a firm's qualified production activities income or taxable income times the phased-in deduction percentage, which ranges from 3 percent to 9 percent and then
A specified percentage of the smaller of the taxpayer's: (1) qualified production activities income (QPAI) for the tax year or (2) taxable income (modified AGI for individuals), without this deduction, for that year (this percentage is 3 percent for tax years beginning in 2005 and 2006, 6 percent for tax years beginning in 2007-2009 and 9 percent thereafter); or
One that will directly benefit many cooperatives and other businesses is the new Qualified Production Activities Income deduction.
The deduction is a percentage of the lesser of the qualified production activities income (QPAI) of the taxpayer for the tax year or the taxable income for the tax year.
199 allows a taxpayer to deduct an amount equal to 9% of the lesser of the taxpayer's qualified production activities income (QPAI) for the tax year or the taxpayer's taxable income for the tax year.
The DPAD is calculated as 9% of the lesser of qualified production activities income or taxable income.
Equals: Qualified production activities income (QPAI)
The new law clarifies that, in computing qualified production activities income, the domestic production activities deduction itself is not an allocable deduction.
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