Just so you know, there is a Small Business Simplified Method you can use if your sales are less than $5 million or you use the cash method of accounting.
To wrap up, the Domestic Production Deduction is well worth investigating and — if found to be beneficial — well worth setting up properly the first time. If you need help with this issue, you can contact me and I will refer you to one of our specialists.
Garry Bartecki is director of dealer/distributor services at BDO Seidman, LLP of Chicago, as well as a consultant to the AED. He has also worked as an independent CPA and consultant to equipment dealers. He can be reached at (312) 616-4677 or email@example.com.