1120-US: Entering the allocable cost of goods when selecting the simplified deduction or Section 861 methods (FAQ)

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Question

Why do I need to enter the allocable cost of goods sold when selecting the simplified deduction or Section 861 methods on Screen 8903?

Answer

Per the form instructions, only the small business simplified overall method can be used to apportion both cost of goods sold and other deductions, expenses, and losses between DPGR and non-DPGR.

Related topic: 1120-US: Form 8903 - Domestic production deduction FAQs

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