AB LP, a partnership domiciled in Pennsylvania, sells an interest in a partnership and a patent. Assume for PA PIT purposes the gain from each sale is reported on Schedule D.
a. Should the gain on the sale of the interest in the partnership and patent in this instance be sourced to Pennsylvania?
b. Under what circumstances would gains from the sale of intangible assets reported on
Schedule D be sourced to PA for PA PIT purposes?
The Department of Revenue has issued guidance on gains from the sale of intangible assets. Please see Personal Income Tax Bulletin 2005-02 Gain or Loss Derived from the Disposition of a Going Concern.