Form 8903, Domestic Production Activities Deduction 2007

Summary: This is an example of Form 8903, Page 1 with these line items filled out:

  • 1. Domestic production gross receipts (DPGR) field contains 301,763
  • 4. If you are using the small business simplified overall method, enter the amount of cost of goods sold and other deductions or losses you ratably apportion to DPGR. All others, skip line 4 field contains 224,264
  • 5. Add lines 2 through 4field contains 224,264
  • 6. Subtract line 5 from line 1 field contains 77,499
  • 8. Add lines 6 and 7. Estates and trusts, go to line 9, all others, skip line 9 and go to line 10. field contains 77,499
  • 10. Qualified production activities income. Estates and trusts, subtract line 9 from line 8, all others, enter amount from line 8. If zero or less, enter -0- here, skip lines 11 through 19, and enter -0- on line 20 field contains 77,499
  • 11. Income limitation (see instructions): Individuals, estates, and trusts. Enter your adjusted gross income figured without the domestic production activities deduction All others. Enter your taxable income figured without the domestic production activities deduction (tax-exempt organizations, see instructions) field contains 63,315
  • 12. Enter the smaller of line 10 or line 11. If zero or less, enter -0- here, skip lines 13 through 19, and enter -0- on line 20 field contains 63,315
  • 13. Enter 6% of line 12 field contains 3,799
  • 14. Form W-2 wages (see instructions) field contains 26,368
  • 16. Add lines 14 and 15. Estates and trusts, go to line 17, all others, skip line 17 and go to line 18 field contains 26,368
  • 18. Estates and trusts, subtract line 17 from line 16, all others, enter amount from line 16 field contains 26,368
  • 19. Form W-2 wage limitation. Enter 50% of line 18 field contains 13,184
  • 20. Enter the smaller of line 13 or line 19field contains 3,799
  • 23. Domestic production activities deduction. Combine lines 20 through 22 and enter the result here and on Form 1040, line 35; Form 1120, line 25; or the applicable line of your returnfield contains 3,799
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