Practical Guide to the Sec. 199 Deduction (Second Edition) offers an insightful look at the ins and outs of this powerful and far-reaching tax break for U.S. businesses. The Guide is written by Jim Kehl, a top tax expert in the area and reflects the wide-ranging impact of Final Regulations issued in 2006; changes made by the Tax Increase Prevention and Reconciliation Act of 2005 on wage limits and partnership or shareholder "wage" considerations; and new strategies and opportunities that can now be explored in light of all these changes.

The Guide offers a practical look at the considerations that must be made, how to calculate the deduction, special planning opportunities available, and pitfalls to avoid. This enlightening guide offers a straightforward and practical explanation of how the deduction works, how to track and report qualifying costs and revenues, and it illustrates the concepts with generous examples to help the reader grasp the complexities.

Code Section 199 rules and strategies have changed substantially since the tax break was created under the American Jobs Creation Act of 2004 with much activity in 2006. Tax practitioners need to understand both the principles and the thorny details that are explained in the Practical Guide.

The book’s author, Jim Kehl, has studied, spoken about and consulted clients and fellow practitioners extensively on the new manufacturer's deduction since it was created in the Fall 2004. His real-world, problem-solving experience and insights into the domestic production deduction is woven throughout this practice manual and will help save readers tremendous time as they grapple to understand the intricacies and applications of this significant new tax code section to gain the benefits it can provide.

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