Below are solutions to frequently asked questions about entering Form 8903, Domestic Production Activities Deduction in the Corporate module of Lacerte.
Important changes to Form 8903
From the IRS Instructions for Form 8903:
Domestic production activities deduction (DPAD). DPAD under former section 199 has been repealed for tax years beginning after 2017. Taxpayers using Form 8903 to compute DPAD for tax years, or items arising from tax years, prior to repeal should use the Instructions for Form 8903 dated December 2018.For specified agricultural or horticultural cooperatives (specified cooperatives), a deduction under section 199A(g) for income attributable to domestic production activities is available for tax years beginning after 2017. Specified cooperatives may use Form 8903, as applicable, to calculate the section 199A(g) deduction.
For further guidance, until final regulations are published in the Federal Register, taxpayers may generally rely on the Proposed Regulations (REG-118425-18), published June 19, 2019, provided the taxpayer applies the rules in their entirety and in a consistent manner. For purposes of the W-2 Wage Limitation, also see Notice 2019-27, 2019-31 IRB, page 484 available at IRS.gov/IRB/2019-31.