What deductions from federal Form 1120 or Form 1120 S must be added back as income for the District of Columbia tax return?
The following deductions are disallowed in DC and must be added back if they were included in your federal income:
- Personal, living, or family expenses
- Any amount paid out for new buildings or for permanent improvements or betterments, made to increase the value of any property or estate
- Any amount expended in restoring property or in making good the exhaustion thereof for which an allowance is or has been made
- Expenses incurred to produce income which is either exempt or not subject to taxation
- Deductible interest expense or intangible expense paid to related members in connection with direct or indirect transactions
