Q&A with the Pennsylvania Department of Revenue
Scenario: The REIT may have PA modifications to federal taxable income
Jan 12, 2018
Q:
For CNIT purposes, a corporate REIT is entitled to a dividends-paid deduction that usually results in federal taxable income of $0. However, the REIT may have PA modifications to federal taxable income. If the net modifications result in PA taxable income, would REIT have a CNIT liability?
A:
In most cases, this will not happen, but if they have PA modifications after taking the dividends then they would be subject to any liabilities, the same as any other corporation.