Q&A with the Pennsylvania Department of Revenue

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.

Leave a comment

Watch: 2019 Q&A with the DOR
Watch: 2019 Q&A with the DOR

Watch Now

A PICPA member login is required to access this content. A full transcript is also available.

Full Transcripts:
Annual Meetings
     
Oct. 2019      Oct. 2018

Oct. 2017      Oct. 2016

  Sept. 2015     Sept. 2014

Full Transcripts:
Quarterly Meetings
Disclaimer

These documents provide a summary of the answers provided by the Department of Revenue to the PICPA Committee on State Taxation at its annual question and answer session. 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 their specific fact situation may request a written letter ruling under 61 Pa. Code Section 3.3.