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.

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.