If qualified production activities income (QPAI) cannot be used in the calculation of the domestic production activities deduction because of the taxable income limitation, the product of the amount not allowed multiplied by the DPAD percentage rate (currently 9%) can be carried over for 5 years.

Question

Quizplus · Accepted Answer

The domestic production activities deduction (DPAD) was repealed for tax years after 2017 by the Tax Cuts and Jobs Act, so there is no carryover provision for QPAI related to DPAD.

If Qualified Production Activities Income (QPAI) Cannot Be Used in the Calculation