Q&A with the Pennsylvania Department of Revenue

Scenario: The REIT may have PA modifications to federal taxable income

Jan 12, 2018

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?


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.

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