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Jonathan Tierney
Jonathan Tierney, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 307
Experience:  Tax Accountant at Praxair, Inc.
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Pearl, I have a K-1 from my company's accountant and line

Customer Question

Hi Pearl, I have a K-1 from my company's accountant and line 12 is noted with a P* with no number but references a statement shown on the next page with many descriptions and $ values and filing instructions that just say see form 8903 instructions. Not sure if I need to enter something into line 12 on K1 or not for filing the 1040. I thought they already completed the k1. Any clue?
JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?
Customer: Not sure
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Submitted: 6 months ago.
Category: Tax
Customer: replied 6 months ago.
The statement lists values for DPGR, Non-DPGR, Allocable COGS, Total COGS, Expenses Allocable to Non-DPGR, Other Apportionable Expenses, Interest Expense, and W-2 wages. Do I need to fill out form 8903 to finish K-1 statement and if so, how? It's confusing.
Expert:  Jonathan Tierney replied 6 months ago.
Hi, my name is ***** ***** I can help. Those amounts are for the domestic production activities deduction which get reported on Form 8903, line 7 for the qualified domestic production activity income and line 17 for W-2 wages. The final deduction amount form line 25 carried to page 1 of Form 1040, line 35. Domestic production activity income is calculated by taking the reported amount for DPRG less allocated COGS less apportionable expenses less interest expense (if allocated to DPRG). I hope this answers your question. Please let me know if I can clarify anything or answer any additional questions.Thanks, Jonathan

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