The Whitmer Trust operates a manufacturing business and distributes the profits to its income beneficiaries. Whitmer passes through to the income beneficiaries the data needed to compute their domestic production activities deduction.

Question

Quizplus · Accepted Answer

As a manufacturing business, Whitmer is eligible for the domestic production activities deduction (DPAD), which reduces the income tax liability for the business. The DPAD can be passed through to income beneficiaries under certain circumstances, so it is possible for Whitmer to provide the necessary data to compute the deduction to its income beneficiaries. Therefore, the statement is true.

The Whitmer Trust Operates a Manufacturing Business and Distributes the Profits