We provide here a written summary of answers provided by the Department of Revenue to the committee at periodic question and answer sessions. 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 a specific fact situation may request a written letter ruling under 61 Pa. Code Section 3.3.

Q&A with the Pennsylvania Department of Revenue

Scenario: 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.

Nov 15, 2019
Q:

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?

A:

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.
 

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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.