Don’t Forget This Commonly Missed Business Deduction!

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The domestic production deduction allows you to take more than 100% of costs for products that are produced or assembled in the US.

A recent district court case says that the production deduction is even more expansive. Business income from the sale of assembled gift baskets is eligible for the write-off.

Here are the details. A company repackaged food items into a variety of gift baskets. In the court’s view, the company took ordinary food items and created a new product with a different demand. In the years involved in the court case, the write-off was 3% of income that was derived from US production activities. Currently, the deduction is 9%

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