The domestic production activities deduction of a consolidated group can be greater than the sum of the deductions of the group members when filing separately.

Question

Quizplus · Accepted Answer

The domestic production activities deduction (DPAD) allows a deduction for a percentage of qualifying income from domestic production activities. When filing as a consolidated group, the DPAD is calculated on the group's combined qualified production activities income (QPAI) and wages. This can result in a higher DPAD for the consolidated group than if the members filed separately and individually took the deduction.

The Domestic Production Activities Deduction of a Consolidated Group Can