Form 8903 Domestic Production Activities Deduction

Form

8903

OMB No. 1545-1984

Domestic Production Activities Deduction

Department of the Treasury
Internal Revenue Service

©

Attach to your tax return.

©

Name(s) as shown on return

1
2
3

4

2006

Attachment
Sequence No.

See separate instructions.

1

Domestic production gross receipts (DPGR)
Allocable cost of goods sold. If you are using the small business
simplified overall method, skip lines 2 and 3

2

If you are using the section 861 method, enter deductions and
losses definitely related to DPGR. Estates and trusts, see
instructions. All others, skip line 3

3

If you are using the section 861 method, enter your pro rata
share of deductions and losses not definitely related to DPGR.
All others, see instructions

4

5

Add lines 2 through 4

5

6

Subtract line 5 from line 1

6

7

Qualified
production
activities
income
from passthrough
entities:

8

9

If you are a—

Then enter the total qualified production activities income from—

a Shareholder

Schedule K-1 (Form 1120S), box 12, code P

b Partner

Schedule K-1 (Form 1065), box 13, code T
Schedule K-1 (Form 1065-B), box 9, code S2

c Beneficiary

Schedule K-1 (Form 1041), box 14, code C

%

Qualified production activities income. Add lines 6 and 7. If zero or less, enter -0- here,
skip lines 9 through 15, and enter -0- on line 16
Income limitation (see instructions):
● Individuals, estates, and trusts. Enter your adjusted gross income figured without the
domestic production activities deduction
● All others. Enter your taxable income figured without the domestic production
activities deduction (tax-exempt organizations, see instructions)

10

%

7

8

9

Enter the smaller of line 8 or line 9. If zero or less, enter -0- here, skip lines 11 through 15,
and enter -0- on line 16

10

11

Enter 3% of line 10

11

12

Form W-2 wages (see instructions)

12

13

Form W-2
wages
from passthrough
entities:

If you are a—

Then enter the total Form W-2 wages from—

a Shareholder

Schedule K-1 (Form 1120S), box 12, code Q

b Partner

Schedule K-1 (Form 1065), box 13, code U
Schedule K-1 (Form 1065-B), box 9, code S3

c Beneficiary

Schedule K-1 (Form 1041), box 14, code D

%

13

14

14

Add lines 12 and 13

15

Form W-2 wage limitation. Enter 50% of line 14

15

16

Enter the smaller of line 11 or line 15

16

17

Domestic production activities deduction from cooperatives. Enter deduction from
Form 1099-PATR, box 6

17

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19

143

Identifying number

Expanded affiliated group allocation (see instructions)
Domestic production activities deduction. Combine lines 16 through 18 and enter the result
here and on Form 1040, line 35; Form 1120, line 25; Form 1120-A, line 21; or the applicable
line of your return

For Paperwork Reduction Act Notice, see separate instructions.

Cat. No. 37712F

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Form

8903

(2006)