Qualified production activities income is defined as follows for purposes of the domestic production activities deduction:
A) net income from selling or leasing property the taxpayer manufactured in the United States.
B) revenue from selling or leasing property the taxpayer manufactured in the United States.
C) revenue from selling or leasing property the taxpayer manufactured in the United States but the revenue was less than 50 percent of qualifying wages used in the production.
D) 6 percent of revenue from selling or leasing property the taxpayer manufactured in the United States.
E) None of the choices are correct.

Question

Quizplus · Accepted Answer

Qualified production activities income (QPAI) is defined as the net income from selling, exchanging, or leasing property the taxpayer manufactured in whole or in significant part within the United States. It also includes income from construction activities performed in the United States. Therefore, option A is the correct choice as it correctly captures the definition of QPAI.

Qualified Production Activities Income Is Defined as Follows for Purposes