Page 389 - Large Business IRS Training Guides

FDII
Terms and Definitions 1

• Deduction Eligible Income (DEI) is generally

the eligible pool
of income that potentially

qualifies as FDII.

• Qualified Business Asset Investment (QBAI)

represents the taxpayer’s tangible business

assets that produce DEI.

• Deemed Tangible Income Return (DTIR) is

of QBAI and is used to estimate
ten percent

tangible profit.

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