1120-US: Calculating the DPAD for consolidated groups (FAQ)

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Question

How does UltraTax/1120 calculate the DPAD for a consolidated group?

Answer

Per IRC Regulation 1.199-7(d)(4), the DPAD of the consolidated group is determined based on the consolidated totals of the group and not the separate taxable income, QPAI, and Form W-2 wages of the group members.

For consolidated groups, data entry for Screen 8903 must be completed in the applicable member clients' returns to generate Form 8903.

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

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