Scenario: Apportioning a taxable loss to Pa.

Dec 08, 2016
Scenario:

ABC Corp. is a startup biotech company that conducts R&D activities (property and payroll) in Pa., NJ and NY. During 2015, ABC Corp. had no receipts of any type and incurred a Pa. taxable loss in the amount of $1 million. ABC Corp. was entitled to apportion its taxable loss to Pa., NJ and NY. 

Q:

As ABC Corp. had no sales anywhere, how would the corporation apportion its loss to Pa.?

A:

Since the income sourced to Pa. is based solely on sales and there are no sales in Pa. none of the loss is sourced to Pa.
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