We provide here a written summary of answers provided by the Department of Revenue to the committee at periodic question and answer sessions. These documents are classified as Revenue information issued for informational purposes only for the convenience of PICPA members. Pursuant to 61 Pa. Code Section 3.4, these documents should not be relied upon for any purpose or used in tax appeals. Taxpayers requiring a binding opinion on a specific fact situation may request a written letter ruling under 61 Pa. Code Section 3.3.
Q&A with the Pennsylvania Department of Revenue
Does a partner in an investment club partnership report the gain or loss on Part I or Part III of PA-20S/PA-65 Information Return?
If the partnership invests for anyone outside of the partnership, the income is considered business income and should be reported in Part I. If investments are strictly for partners of the partnership, income (loss) would be reported in Part III.