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Taxpayer Wins: Court Ruling Affirms DPAD Deduction

The  U.S. District Court for the Central District of California has ruled that assembling gift baskets is a qualifying activity for the Domestic Production Activities Deduction (DPAD.)

In essence, the court said that the taxpayer(s) created a new product, which therefore qualified for the deduction.

This has potential implications for other types of businesses that "transform" personal property.

A good article summarizing the case can be found at Accounting Today.

If you would like to explore the implications this may have for your business, please give me a call.

And always consult a tax professional before acting on anything you read or hear!