French Larry Taylor is a tax specialist who lives and works in Dallas, Texas at KPMG LLP, where he is a tax partner and head of the West Region of the firm’s Tax Accounting Methods Practice.

He is a specialist on the Section 199 tax deduction, a tax break for those businesses that manufacture their products within the borders of the United States. Section 199, which is also known as the domestic manufacturing deduction, the U.S. production activities deduction, and the domestic production deduction, is part of the American Jobs Creation Act of 2004. That law was enacted by Congress and signed by then-President George W. Bush in an effort to reduce the tax burden on American manufacturers, and as a result lead to the creation of more jobs.

Under Section 199, Domestic Production Gross Receipts, or DPGR, can be derived from qualifying production activities that are conducted either entirely, or in significant part, within U.S. borders. French Larry Taylor is a tax professional who lives and works in Dallas, Texas. Qualifying production includes the manufacture, production, growth or extraction of personal property, excluding land and buildings. It encompasses tangible property, including computer software and sound recordings.

Also eligible under Section 199 is the production of qualified film; the production of electricity, natural gas, or water; the construction of real property; and the services of an architect or engineer. The DPGR must be owned by the producer who is making the 199 deductions.

Only the income produced by these qualifying activities is eligible for a Section 199 deduction. The deduction is allowed for regular and alternative minimum tax for individuals, farming co-ops, C corporations, estates, trusts, and their beneficiaries. It’s also allowed for at the owner, partner or member level for a partnership, LLC and S corporations.

The Section 199 deduction doesn’t always apply at the state level, and it’s important for businesses to be aware of that. At least twenty-two states have departed from the federal deduction.

French Larry Taylor advises his clients on Section 199 deductions. His other specialties include Tax Accounting Methods and Credits, Fixed Asset and Repair issues, consolidated returns, and FAS 109. He has written articles on tax matters, which have appeared in the Journal of Taxation and Tax Advisor.

For More Information Visit at : http://frenchlarrytaylor.weebly.com/

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