Is the manufacturers’ deduction a worthy construction project?
Abstract: Like completing a construction project, claiming the manufacturers’ deduction calls for a solid foundation (of documentation) and an intricate infrastructure (of calculations). But the effort may be well worth it. This article explains that the deduction isn’t just for manufacturers — it also applies to domestic production gross receipts (DPGR) derived from constructing or erecting buildings or other real property, as well as from substantial renovations of real property. But claiming the deduction is complicated, so the article goes on to discuss considerations that must be addressed — ideally, by a tax advisor.