reglab/statecodes huggingface dataset:
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article IV - County Collections › Chapter 93 - INHERITANCE TAX DIVISION › Subchapter E - BASIS OF TAX › Section 93.131 - Payments from employment benefit plans and life insurance contracts

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Scope
						and application
. The purpose of this section is to establish rules
						relating to the circumstances under which payments received from employment
						benefit plans and life insurance contracts are subject to the inheritance and
						estate tax.
(b)
Definitions
. The following words and terms, when used in this
						section, have the following meanings, unless the context clearly indicates
						otherwise:
Employment benefit plans
-Payments
						  under pension, stock bonus, profit-sharing and other retirement plans
						  including, but not limited to, H. R. 10 plans, individual retirement accounts,
						  individual retirement annuities and individual retirement bonds.
Life insurance contracts
-A contract
						  possessing features of risk shifting and risk distribution, between the holder
						  of a policy and an insurance company under which the company agrees, in return
						  for the payment of premiums, to pay a specified sum to the designated
						  beneficiaries upon the death of the insured. For purposes of this section, a
						  life insurance contract does not include a matured endowment policy or a policy
						  where the decedent's only rights, at the time of his death, were to receive a
						  refund under the policy.
(c)
Life insurance contract
.
(1)
For the estate of a decedent dying prior to December 13, 1982
.
						Payments received from a life insurance contract are exempt from the
						inheritance tax, unless the payments are made to the estate of the decedent.
						Payments made to the estate of the decedent from a life insurance contract are
						subject to the tax.
(2)
For
						the estate of a decedent dying on December 13, 1982 and thereafter
.
						Payments received from a life insurance contract are exempt from the
						inheritance tax whether they are paid to the estate or some other
						beneficiary.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article IV - County Collections › Chapter 93 - INHERITANCE TAX DIVISION › Subchapter F - DISCLAIMERS OF NONPROBATE TAXABLE ASSETS › Section 93.141 - Disclaimers of nonprobate taxable assets

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Scope and application.
Subsection (c) sets forth specific criteria the Department will utilize to
						determine whether a disclaimer executed in regard to either nonprobate taxable
						assets or nontrust assets of a decedent is valid for Inheritance Tax purposes,
						when the disclaimer is made by the disclaiming party, or the personal
						representative of a deceased individual, or the guardian or attorney-in-fact of
						an incapacitated person or minor to whom the interest would devolve, absent a
						disclaimer.
(b)
Definitions.
The following words and terms, when used in this
						section, have the following meanings, unless the context clearly indicates
						otherwise:
Disclaimant
-Any party in an
						  individual capacity, or a personal representative on behalf of a deceased
						  individual, or a guardian or attorney-in-fact on behalf of an incapacitated
						  person or a minor who renounces or refuses to accept a transfer of
						  property.
Disclaimer
-A signed renunciation or
						  refusal to accept an interest in property that describes the interest
						  disclaimed. The disclaimer may disclaim, in whole or in part, any present or
						  future interest, vested or contingent, including a possible future right to
						  take as an appointee under an unexercised power of appointment or under a
						  discretionary power to distribute income or principal.
Nonprobate taxable asset
-Property
						  transferred upon a decedent's death that is subject to Inheritance Tax but is
						  not subject to administration by the personal representative of the decedent's
						  estate.
(c)
Conditions.
Disclaimers of nonprobate taxable assets,
						including rights of survivorship interests in multiple-party accounts, titled
						tangible personal property or real estate, beneficial interests in third-party
						beneficiary contracts (that is, retirement benefit plans, annuity contracts,
						individual retirement accounts, Keogh Plan proceeds, matured endowment
						insurance policies and certain out-of-State government lottery contracts) and
						intervivos gifts are valid for Inheritance Tax purposes if the following
						conditions are met:
(1) The disclaimer is made
						by a disclaimant.
(2) The
						disclaimer is in writing and satisfies 20 Pa.C.S. Chapter 62 (relating to
						disclaimers).
(3) The disclaimer is
						signed and dated by the disclaimant.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article IV - County Collections › Chapter 94 - INHERITANCE TAX PRONOUNCEMENTS-STATEMENTS OF POLICY › Section 94.2 - Awards received in reparation for the seizure, theft, requisition or involuntary conversion of the income of victims of Nazi persecution

Current through Register Vol. 54, No. 28, July 13, 2024
For decedents dying on or before the date upon which the
						awards or settlements received by a decedent's estate in reparation for the
						seizure, theft, requisition or involuntary conversion of the property or income
						of victims of Nazi persecution are liquidated pursuant to any legally binding
						settlement or notice, or both, thereof, the assets are determined by the
						Department to have a value of zero at the decedent transferor's
						death.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article IV - County Collections › Chapter 94 - INHERITANCE TAX PRONOUNCEMENTS-STATEMENTS OF POLICY › Section 94.3 - Taxation of trusts terminated under 20 Pa.C.S.§7710.1

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Effective for
					 Resident and Non-Resident Pennsylvania Inheritance Tax Returns filed on or
					 after July 1, 2012, wherein the person responsible for filing the return has
					 not made an election to prepay tax under section 2113(a) of the Inheritance and
					 Estate Tax Act (act) (72 P. S. §
												9113(a)) concerning trust
					 assets reported on the return as part of a qualified spousal trust under
					 section 2113 of the act, the Department will reserve the right to assess
					 Pennsylvania Inheritance Tax at the highest applicable rate in effect at the
					 time the Department issues its initial Notice of Inheritance Tax Appraisement,
					 Allowance or Disallowance of Deductions and Assessment of Tax, unless the
					 person responsible for filing the return requests a Future Interest Compromise
					 from the Department in conjunction with the filing and in the manner prescribed
					 by the Department.
(b) If a Future
					 Interest Compromise is not requested in accordance with subsection (a), the
					 person responsible for filing the return shall acknowledge in writing, in the
					 form and manner provided by the Department, the person's assumption of
					 liability for inheritance tax consequences that result from the termination of
					 a trust under
					 20 Pa.C.S. §
												7710.1
					 (relating to nonjudicial settlement agreements-UTC 111) that occurs after the
					 return has been filed. This assumption of liability applies to a termination
					 made without court approval or notice to the Department. This liability does
					 not apply to a termination made under a specified termination date as contained
					 within the trust instrument provided to the Department.
(c) If a trust has been terminated under
					 20 Pa.C.S. §
												7710.1,
					 without request for a Future Interest Compromise in accordance with subsection
					 (a), the assets of the trust will be valued for Pennsylvania Inheritance Tax
					 purposes as of the date of termination and tax will be due and owing as of the
					 date of termination. Interest will accrue on an inheritance tax liability as of
					 the termination date and in accordance with section 806 of The Fiscal Code
					 (72
					 P. S. §
												806).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 101 - GENERAL PROVISIONS › Section 101.2 - Accounting methods

Current through Register Vol. 54, No. 28, July 13, 2024
No one method of accounting is prescribed for taxpayers.
						Each taxpayer shall adopt the methods, forms and systems that best suit his
						needs, so long as they clearly reflect income. A method of accounting which
						reflects the consistent application of generally accepted accounting principles
						in a particular trade or business in accordance with prevailing conditions or
						practices in that trade or business shall be presumed to clearly reflect
						income, if the method is used for Federal income tax
						purposes.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 101 - GENERAL PROVISIONS › Section 101.4 - Residents not domiciled in this Commonwealth

Current through Register Vol. 54, No. 28, July 13, 2024
(a) An individual domiciled in this
					 Commonwealth shall be a resident for purposes of this article for a specific
					 taxable year, unless for that year he satisfies all three of the following
					 requirements:
(1) Maintains no permanent place
					 of abode in this Commonwealth during the year.
(2) Maintains a permanent place of abode
					 elsewhere during the entire year.
(3) Spends in the aggregate not more than 30
					 days of the taxable year in this Commonwealth.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 101 - GENERAL PROVISIONS › Section 101.5 - Rules for days within and without this Commonwealth

Current through Register Vol. 54, No. 28, July 13, 2024
(a) In counting the number of days spent
					 within and without this Commonwealth, presence within this Commonwealth for any
					 part of a calendar day constitutes a day spent within this Commonwealth, except
					 that the presence within this Commonwealth may be disregarded if it is solely
					 for the purpose of boarding a plane, ship, train or bus for travel to a
					 destination outside of this Commonwealth, or while traveling by motor, plane,
					 or train through the Commonwealth to a destination outside this
					 Commonwealth.
(b) An individual
					 domiciled outside this Commonwealth who maintains a permanent place of abode
					 within this Commonwealth during any taxable year and claims to be a nonresident
					 shall keep and have available for examination by the Department adequate
					 records to substantiate the fact that he did not spend more than 183 days of
					 the taxable year within this Commonwealth.
This section cited in 61 Pa. Code §
													101.3 (relating to
						  domicile).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 101 - GENERAL PROVISIONS › Section 101.6 - Compensation

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Compensation
					 includes items of remuneration received, directly or through an agent, in cash
					 or in property, based on payroll periods or piecework, for services rendered as
					 an employee or casual employee, agent or officer of an individual, partnership,
					 business or nonprofit corporation, or government agency. These items include
					 salaries, wages, commissions, bonuses, stock options, incentive payments, fees,
					 tips, dismissal, termination or severance payments, early retirement incentive
					 payments and other additional compensation contingent upon retirement,
					 including payments in excess of the scheduled or customary salaries provided
					 for those who are not terminating service, rewards, vacation and holiday pay,
					 paid leaves of absence, payments for unused vacation or sick leave, tax assumed
					 by the employer, or casual employer signing bonuses, amounts received under
					 employee benefit plans and deferred compensation arrangements, and other
					 remuneration received for services rendered.
(b) Scholarships, stipends, grants and
					 fellowships shall be taxable as compensation, if services are rendered in
					 connection therewith.
(1) When used in this
					 subsection, the following words have the following meanings, unless the context
					 clearly indicates otherwise:
(i)
Fellowship stipend
or
fellowship award
-A
					 fixed sum of money paid periodically for services or to defray expenses to a
					 graduate student who is enrolled in a graduate degree program at a
					 university.
(ii)
Grant-in-aid
-Financial support given by a public agency or
					 private institution to an individual to further the individual's
					 education.
(iii)
Postdoctoral research fellowship stipend
or
postdoctoral research fellowship award
-A fixed sum of money
					 paid periodically for services or to defray expenses of an individual who has
					 obtained a doctoral degree at a university and is conducting research at a
					 research facility.
(iv)
Scholarship
-A grant-in-aid to a student.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 101 - GENERAL PROVISIONS › Section 101.6a - Fringe benefits in the form of use of property or services

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Remuneration for services received in the
					 form of personal or business use of property is not taxable as compensation if
					 the following requirements are met:
(1) The
					 property belongs to, or is held under a lease by, the employer at the time of
					 use.
(2) No title, interest or
					 estate therein is conferred upon, or vested in, another person.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 101 - GENERAL PROVISIONS › Section 101.8 - Income from sources within this Commonwealth

Current through Register Vol. 54, No. 28, July 13, 2024
(a) For a nonresident individual, estate or
					 trust income from sources within this Commonwealth includes all income
					 enumerated and classified under Chapter 103, Subchapter B (relating to
					 determination of tax) to the extent it is earned, received or acquired from
					 sources within this Commonwealth as follows:
(1) By reason of ownership or disposition of
					 an interest in real or tangible personal property in this
					 Commonwealth.
(2) In connection
					 with a trade, profession or occupation carried on in this Commonwealth or for
					 the rendition of personal services performed in this Commonwealth.
(3) As a distributive share of the income of
					 an unincorporated business, profession, enterprise, undertaking or other
					 activity as the result of work done, services rendered or other business
					 activities conducted in this Commonwealth, except as allocated to another state
					 under regulations promulgated by the Department.
(4) From intangible personal property
					 employed in a trade, profession, occupation or business carried on in this
					 Commonwealth.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 101 - GENERAL PROVISIONS › Section 101.9 - Trusts

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Charitable trust.
A charitable trust shall be exempt from the
					 personal income tax. This exemption has been granted because the trusts serve a
					 public rather than a private interest. Accordingly, no trust may be deemed to
					 be a charitable trust unless it is operated exclusively during the taxable year
					 in question for religious, charitable, scientific, literary or educational
					 purposes and serves a public interest as compared with a private interest.
					 Additional requirements are as follows:
(1) A
					 trust created by the will of an individual who at the time of his death was a
					 resident individual, one created by a person who at the time of the creation
					 was a resident, or one consisting in whole or in part of property transferred
					 to it by a person who at the time of the transfer was a resident and which is a
					 charitable trust may not be within the term resident trust as used in this
					 article.
(2) A trust shall be
					 regarded as operated exclusively for one or more exempt purposes only if it
					 engages primarily in activities which accomplish one or more of the exempt
					 purposes set forth in subsection (a)(1).
(3) A trust is not regarded as charitable if
					 more than an insubstantial part of its activities is not in furtherance of an
					 exempt purpose. A trust is not deemed to be operated exclusively for one or
					 more exempt purposes if its net earnings inure in whole or in part to the
					 benefit of private shareholders or individuals. For example, a trust is created
					 by a resident individual and under its governing instrument income is payable
					 to the spouse of the individual for life. Upon the death of the spouse all
					 income of the trust is payable, at the discretion of the trustees, to
					 charitable organizations. The trust may not be a charitable trust for a year in
					 which the income of the trust is payable to the spouse of the
					 individual.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 103 - IMPOSITION AND DETERMINATION OF TAX › Subchapter A - PERSONS SUBJECT TO TAX › Section 103.1 - Tax imposed on residents

Current through Register Vol. 54, No. 28, July 13, 2024
(a) There
						shall be imposed an annual tax at the rate prescribed in Article III of the TRC
						(72
						P. S. §§
													7301-7361) on the
						privilege of residents receiving specified classes of income, without set off
						of losses from one class against income from another class, and without
						carrying losses back or forward from year to year.
(b) The tax rate to be used for the
						computation of tax by calendar and fiscal year filers whose year begins in the
						following taxable years is:
1983.. .2.45%
1984.. .2.40%
1985.. .2.35%
1986.. .2.16%
1987.. .2.10%
The provisions of this §
														103.1 amended under section 354 of
							 the Tax Reform Code of 1971 (72 P. S. §
															7354).
This section cited in 61 Pa. Code §
														101.9 (relating to trusts); and 61
							 Pa. Code §
														105.6 (relating to illustration of
							 the provisions of this chapter).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 103 - IMPOSITION AND DETERMINATION OF TAX › Subchapter A - PERSONS SUBJECT TO TAX › Section 103.2 - Tax imposed on nonresidents

Current through Register Vol. 54, No. 28, July 13, 2024
The tax imposed by this section is the same as that
						  imposed on residents, and it applies to the income of a nonresident as set
						  forth in Chapter 109 (relating to nonresident individuals).
This section cited in 61 Pa. Code §
														105.6 (relating to illustration of
							 the provisions of this chapter).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 103 - IMPOSITION AND DETERMINATION OF TAX › Subchapter B - DETERMINATION OF TAX › Section 103.11 - Compensation

Current through Register Vol. 54, No. 28, July 13, 2024
Reference should be made to §
												101.6 (relating to
						  compensation).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 103 - IMPOSITION AND DETERMINATION OF TAX › Subchapter B - DETERMINATION OF TAX › Section 103.12 - Net profits

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Net profits
						shall be the net income from the operation of a business, profession or other
						activity after provision for all costs and expenses incurred in the conduct
						thereof. They shall be determined either on a cash or accrual basis in
						accordance with accepted accounting principles and practices.
(b) To constitute net profits, all of the
						following must apply:
(1) The gross profits
						shall be derived from one of the following:
(i) The marketing of a product or service to
						customers on a commercial basis or from securities employed as working capital
						in the business operations.
(ii)
						Accounts and notes receivable from sales of products or services sold in the
						ordinary course of the business operations.
(iii) Assets which serve an operational
						function in the ordinary course of business operations.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 103 - IMPOSITION AND DETERMINATION OF TAX › Subchapter B - DETERMINATION OF TAX › Section 103.14 - Rents, royalties, patents and copyrights

Current through Register Vol. 54, No. 28, July 13, 2024
Net gains or income shall include that which is derived
						  from or in the form of rents, royalties, patents and
						  copyrights.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 103 - IMPOSITION AND DETERMINATION OF TAX › Subchapter B - DETERMINATION OF TAX › Section 103.15 - Dividends

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Dividends shall
						be any distribution in cash or property made by a corporation, association or
						business trust from the following sources:
(1)
						Accumulated earnings and profits.
(2) Earnings and profits of the year in which
						such dividend is paid.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 103 - IMPOSITION AND DETERMINATION OF TAX › Subchapter B - DETERMINATION OF TAX › Section 103.17 - Gambling and lottery winnings

Current through Register Vol. 54, No. 28, July 13, 2024
Gambling and lottery winnings, other than prizes of the
						  State Lottery won on or after July 21, 1983, shall be taxable. These consist of
						  gains arising from gambling and lotteries. In calculating gains, the taxpayer
						  may deduct gambling and lottery losses, other than losses incurred in the State
						  Lottery on or after July 21, 1983, but may not deduct the costs and expenses
						  incurred in connection with the gambling and lottery activity. In addition to
						  the other recordkeeping requirements under Article III of the TRC of 1971
						  (72
						  P. S. §§
													7301-7361), the taxpayer
						  shall maintain detailed records substantiating losses. The taxpayer shall have
						  the burden of proving losses.
The provisions of this §
														103.17 issued under section 354 of
							 the Tax Reform Code of 1971 (72 P. S. §
															7354).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 103 - IMPOSITION AND DETERMINATION OF TAX › Subchapter B - DETERMINATION OF TAX › Section 103.18 - Net gains or income derived through estates or trusts

Current through Register Vol. 54, No. 28, July 13, 2024
(a) This class consists of the classes of
						income enumerated and classified under this subchapter received by an estate or
						trust directly and paid, credited or otherwise required to be distributed to
						its beneficiary. Reference should be made to §
												105.4 (relating to income of
						estates, trusts and their beneficiaries). Income derived from an estate or
						trust shall retain the same character in the hands of the ultimate beneficiary
						as in the hands of the estate or trust. For example, a resident estate receives
						net rental income from property in this Commonwealth and distributes that
						income to its beneficiary, a residuary trust, under the will of the resident
						decedent, which in turn distributes that income to a nonresident individual
						beneficiary. The income is from this Commonwealth source and shall be taxable
						to the nonresident individual beneficiary.
(b) To the extent that income or gain is
						subject to tax under one of the other classes of income enumerated in this
						section, such income or gain shall not be subject to tax under one of the other
						enumerated classes.
This section cited in 61 Pa. Code §
														105.4 (relating to income of
							 estates, trusts and their
							 beneficiaries).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 103 - IMPOSITION AND DETERMINATION OF TAX › Subchapter B - DETERMINATION OF TAX › Section 103.19 - Utilities-return of capital distributions

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Distributions by corporations which are
						treated as a return of capital for Federal income tax purposes shall also be
						treated as a return of capital for Pennsylvania personal income tax purposes
						and therefore not taxable as dividends under section 303(a)(5) of the TRC
						(72
						P. S. §
													7303(a)(5)).
(b) That portion of a distribution which is a
						return of capital shall be applied against and shall reduce the adjusted basis
						of the stock. That portion of a distribution which is a return of capital, to
						the extent it exceeds the adjusted basis of the stock, shall be treated as gain
						or income from the disposition of property.
(c) To the extent that a distribution which
						was a return of capital was previously taxed as dividend income to the
						recipient under prior Department policy, the recipient need not reduce the
						adjusted basis of the stock.
(d)
						This section is effective for the 1981 tax year and all future years.
The provisions of this §
														103.19 issued under section 354 of
							 the Tax Reform Code of 1971 (72 P. S. §
															7354).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 105 - ESTATES AND TRUSTS › Section 105.1 - Scope

Current through Register Vol. 54, No. 28, July 13, 2024
This chapter deals with the taxation of estates and
						trusts and their beneficiaries. This chapter does not apply to any trust which,
						under the governing instrument and applicable State law, is revocable by the
						settlor. In such case, the settlor shall be deemed to be the recipient of the
						income or gains of the trust. The term trust, as used in this chapter, does not
						apply to any business trust including any trust treated as a real estate
						investment trust for Federal income tax purposes.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 105 - ESTATES AND TRUSTS › Section 105.2 - Taxability of estates, trusts and their beneficiaries

Current through Register Vol. 54, No. 28, July 13, 2024
The income of a beneficiary of an estate or trust in
						respect of the estate or trust shall consist of that part of the income or
						gains received by the estate or trust for its taxable year ending within or
						with the beneficiary's taxable year which, under the governing instrument and
						applicable State law, is required to be distributed currently or is in fact
						paid or credited to the beneficiary. The income or gains of the estate or
						trust, if any, taxable to the estate or trust shall consist of the income or
						gains received by it which has not been distributed or credited to its
						beneficiaries.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 105 - ESTATES AND TRUSTS › Section 105.3 - Application of tax

Current through Register Vol. 54, No. 28, July 13, 2024
The tax imposed by Chapter 103, Subchapter A (relating to
						persons subject to tax) is to be paid by the beneficiary of an estate or trust
						if the income upon which the tax is based is received by the estate or trust
						and, under the governing instrument and applicable State law, is required to be
						distributed to the beneficiary currently or is in fact paid or credited to him.
						The tax imposed by Chapter 103, Subchapter A is to be paid by the estate or
						trusts only if the income upon which the tax is based is not required to be
						distributed to the beneficiary currently and is not in fact paid or credited to
						him.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 105 - ESTATES AND TRUSTS › Section 105.4 - Income of estates, trusts and their beneficiaries

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Income of estates and
					 trusts.
The income of a resident estate or trust shall consist of the
					 following:
(1) The classes of income
					 enumerated in Chapter 103, Subchapter B (relating to determination of tax)
					 received by the estate or trust directly.
(2) The class of income enumerated in §
												103.18 (relating to net gains or
					 income derived through estates or trusts) that is, the classes of income
					 enumerated in Chapter 103, Subchapter B received or derived from any other
					 estate or trust.
(3) Other income
					 not enumerated in Chapter 103, Subchapter B.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 105 - ESTATES AND TRUSTS › Section 105.5 - Special rules

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Gifts, bequests and the like.
A gift or bequest of a specific
					 sum of money or of specific property, which is required to be paid or
					 distributed to a beneficiary by the specific terms of the will or trust
					 instrument and is properly paid or credited to the beneficiary, shall not be
					 deemed to be a distribution of income by the estate or trust to the
					 beneficiary.
(b)
Amounts
					 accumulated for charitable purposes.
In the case of an estate or
					 trust, any amount of income required by the terms of the governing instrument
					 to be accumulated and added to the principal for ultimate distribution to, or
					 to be held in trust for the use of, any religious, charitable, scientific,
					 literary, or educational organization shall be deemed to have been paid,
					 credited, or required to be distributed to a charitable trust.
(c)
Accumulated income distributed by
					 a nonresident estate or trust to a resident beneficiary.
Amounts
					 received by a resident beneficiary from a nonresident estate or trust shall be
					 taxable to the beneficiary in the year received to the extent that such income
					 was not subject to tax under this article. The resident beneficiary shall be
					 allowed a credit against the tax otherwise due under this article for his pro
					 rata share of any income tax, wage tax or tax on or measured by gross or net
					 earned or unearned income imposed on the estate or trust with respect to such
					 income by another state. The credit shall not exceed the proportion of the tax
					 otherwise due. Reference should be made to §
											111.4 (relating to limitation on
					 credit).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 107 - PARTNERSHIPS AND ASSOCIATIONS › Section 107.1 - General taxability of partners and members

Current through Register Vol. 54, No. 28, July 13, 2024
A partner or member of an association shall report his
						share of the net income of a partnership or association for its taxable year
						ending within or with the taxable year of the partner or member. The share of a
						partner of the net income of a partnership shall include his share of any
						guaranteed payments received from the partnership. The share of a partner of
						income shall be reported as net profits from the operation of a business,
						profession or other activity, net gains or income from disposition of property,
						net gains or income derived from or in the form of rents, royalties, patents
						and copyrights, dividends, interest, gambling or lottery winnings, or net gains
						or income derived through estates and trusts, depending upon which class it
						shall fall within.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 107 - PARTNERSHIPS AND ASSOCIATIONS › Section 107.2 - Taxability of resident and nonresident partners and members

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The share of a partner or member of the
					 net income of a partnership or association shall be his share of the net income
					 whether or not distributed.
(b) A
					 partner or member who is a resident of this Commonwealth shall report his
					 entire share of the net income from the partnership or association regardless
					 of where the income was earned.
(c)
					 A partner or member who is a nonresident of this Commonwealth shall report only
					 income of the partnership or association from sources within this
					 Commonwealth.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 107 - PARTNERSHIPS AND ASSOCIATIONS › Section 107.3 - Determination of income

Current through Register Vol. 54, No. 28, July 13, 2024
Net income of a partnership or association shall be
						determined and reported on the basis of accepted accounting principles and
						practices after provision for all costs and expenses incurred in the conduct
						thereof. Deductions may not be allowed for expenses not related to the
						production of income, nor may taxes based on income be allowed as a
						deduction.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 107 - PARTNERSHIPS AND ASSOCIATIONS › Section 107.4 - Formation of a partnership of association

Current through Register Vol. 54, No. 28, July 13, 2024
The transfer of property or anything else of value to a
						partnership or association in exchange for an interest therein may give rise to
						income or gain subject to tax under §
											103.13 (relating to net gains or
						income from disposition of property).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 107 - PARTNERSHIPS AND ASSOCIATIONS › Section 107.5 - Liquidation of a partnership or association

Current through Register Vol. 54, No. 28, July 13, 2024
The transfer of cash or property to a partner or member
						of a partnership or association in liquidation of his interest therein shall
						give rise to gain or loss to the extent of the difference between the cash and
						fair market value of other property received and the base of the partner or
						member for his partnership or association interest immediately before the
						distribution.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 107 - PARTNERSHIPS AND ASSOCIATIONS › Section 107.6 - Tax returns

Current through Register Vol. 54, No. 28, July 13, 2024
Partnerships and associations deriving income from
						sources within or occupying an office within this Commonwealth shall file a tax
						information return annually. Reference should be made to §
											117.17 (relating to partnership
						returns).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 108 - DISTRIBUTIONS › Section 108.1 - Distributions by corporations

Current through Register Vol. 54, No. 28, July 13, 2024
(a) That
					 portion of a distribution paid or credited out of earnings and profits by a
					 corporation to a taxpayer in his capacity as a stockholder shall be taxed as a
					 dividend. The remaining portion shall be applied against, and reduce, the
					 adjusted basis of the taxpayer's stock and, to the extent that it exceeds the
					 adjusted basis of the stock, shall be taxed as a net gain from the disposition
					 of intangible personal property.
(b) The amount of a distribution shall be the
					 amount of money, and the fair market value of property determined as of the
					 date of the distribution, received, reduced, but not below zero, by the amount
					 of any liability of the corporation assumed by the stockholder in connection
					 with the distribution and the amount of any liability to which the property
					 received by the stockholder is subject immediately before, and immediately
					 after, the distribution.
(c) The
					 portion of a distribution that is paid or credited out of earnings and profits
					 shall be determined in accordance with the following:
(1) Every distribution shall be deemed to be
					 made out of earnings and profits to the extent thereof and from the most
					 recently accumulated earnings and profits.
(2) If the current taxable year's earnings
					 and profits equal or exceed the amount of distributions made on stock during
					 the year, each distribution is wholly a dividend paid out of current earnings
					 and profits.
(3) If the amount of
					 distributions made on stock during the current taxable year exceeds the year's
					 earnings and profits, the following apply:
(i)
					 The year's earnings and profits shall be allocated proportionately to each
					 distribution.
(ii) The remaining
					 portion of each distribution is a dividend only to the extent of accumulated
					 earnings and profits at the time the distribution is made.
(4) Income or gain that is taxable under, as
					 well as income or gain that is exempt from, or not taxable under, this article
					 shall be included in computing earnings and profits.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 108 - DISTRIBUTIONS › Section 108.2 - Distributions by business trusts

Current through Register Vol. 54, No. 28, July 13, 2024
A distribution paid or credited to a taxpayer in its
						capacity as an interest holder by a business trust is treated in the same
						manner as a distribution by a corporation to its
						stockholders.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 108 - DISTRIBUTIONS › Section 108.3 - Distributions by investment companies

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Investment company.
For
					 purposes of this section, the term "investment company" includes the following:
(1) A regulated investment company, as
					 defined in 26 U.S.C.A.
					 §
													851 (relating to the definition of
					 regulated investment company).
(2)
					 An incorporated or unincorporated enterprise registered with the Securities and
					 Exchange Commission under the Investment Company Act of 1940 (15 U.S.C.A. §§
													80a -
					 1 -
					 80b -
					 21).
(3) An investment company which has no or
					 only limited powers under its governing instruments to vary its
					 investments.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 109 - NONRESIDENT INDIVIDUALS › Section 109.1 - Taxable income of nonresident individuals

Current through Register Vol. 54, No. 28, July 13, 2024
The income of a nonresident individual subject to
						taxation shall be that part of his income from sources within this
						Commonwealth. In determining what is income from sources within this
						Commonwealth reference should be made to §
											101.8 (relating to income from
						sources within this Commonwealth).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 109 - NONRESIDENT INDIVIDUALS › Section 109.2 - Husband and wife

Current through Register Vol. 54, No. 28, July 13, 2024
(a)
Both nonresidents subject to tax.
If separate returns are
					 filed by a husband and wife both of whom are nonresidents and subject to tax,
					 then their income from sources within this Commonwealth shall also be
					 separately determined.
(b)
Both nonresidents but only one subject to tax.
If only one
					 nonresident spouse is subject to tax, then only the income of that spouse from
					 sources in this Commonwealth shall be subject to tax.
(c)
One spouse is a
					 nonresident.
The following requirements apply:
(1)
Separate returns.
If
					 either husband or wife is a nonresident and the other a resident, they shall
					 determine their tax based on their own separate incomes and their tax
					 liabilities shall be separate. Reference should be made to §
												117.1 (relating to general
					 requirements of a return).
(2)
Joint returns.
If both spouses elect to file a joint income
					 tax return, then their income shall be determined as if they were residents and
					 their tax liability shall be joint and several.
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 109 - NONRESIDENT INDIVIDUALS › Section 109.3 - Business carried on wholly within this Commonwealth

Current through Register Vol. 54, No. 28, July 13, 2024
A business, trade, profession or occupation, as
						distinguished from personal services as an employe or casual employe, is
						carried on by a nonresident wholly within this Commonwealth, if the activities
						described in §
											101.8 (relating to income from
						sources within this Commonwealth) are carried on solely within this
						Commonwealth and none of the activities are carried on outside of this
						Commonwealth though the nonresident or his representative travels outside of
						this Commonwealth for purpose of buying, selling, financing or performing
						duties in connection with the business, and even though sales may be made to,
						or services performed for, or on behalf of, persons or corporations located
						outside of this Commonwealth. If a nonresident individual carries on a
						business, trade, profession or occupation wholly within this Commonwealth, all
						his items of income, gain, loss and deduction attributable to the business
						shall be deemed from sources within this Commonwealth.
The provisions of this §
													109.3 amended under section 354 of
						  the Tax Reform Code of 1971 (72 P. S. §
														7354).
This section cited in 61 Pa. Code §
													101.8 (relating to income tax
						  sources within this Commonwealth).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 109 - NONRESIDENT INDIVIDUALS › Section 109.4 - Business carried on partly within and partly without this Commonwealth

Current through Register Vol. 54, No. 28, July 13, 2024
A business, trade, profession or occupation, as
						distinguished from personal services as an employe or casual employe, is
						carried on partly within and partly without this Commonwealth if one or more of
						the activities described in §
											101.8 (relating to income from
						sources within this Commonwealth), is systematically and regularly carried on
						within this Commonwealth and one or more of the activities is systematically
						and regularly carried on outside of this Commonwealth or if one or more of the
						activities is systematically and regularly carried on both within and without
						this Commonwealth.
The provisions of this §
													109.4 amended under section 354 of
						  the Tax Reform Code of 1971 (72 P. S. §
														7354).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 109 - NONRESIDENT INDIVIDUALS › Section 109.6 - Rentals and gains from the sale or exchange of real property

Current through Register Vol. 54, No. 28, July 13, 2024
Income from and deductions connected with the rental of
						real property, and gain and loss from the sale, exchange, or other disposition
						of real property shall not be subject to allocation under §
											109.5 (relating to apportionment
						and allocation of income from a business carried on partly within and partly
						without this Commonwealth), but considered as entirely derived from or
						connected with the state in which such real property is
						located.
This section cited in 61 Pa. Code §
													109.5 (relating to apportionment
						  and allocation of income from a business, carried on partly within and partly
						  without this Commonwealth).
Pennsylvania Code › Title 61 - REVENUE › Part I - Department of Revenue › Subpart B - General Fund Revenues › Article V - Personal Income Tax › Chapter 109 - NONRESIDENT INDIVIDUALS › Section 109.7 - Earnings of salesmen

Current through Register Vol. 54, No. 28, July 13, 2024
If the commission for sales made or other compensation
						for services performed by a nonresident traveling salesman, agent or other
						employe or casual employe depends directly upon the volume of business
						transacted by him, his items of income derived from or connected with
						Commonwealth sources include that proportion of the amount of the items
						attributable to the business which the volume of business transacted by him
						within this Commonwealth bears to the total volume of business transacted by
						him within and without this Commonwealth.
The provisions of this §
													109.7 amended under section 354 of
						  the Tax Reform Code of 1971 (72 P. S. §
														7354).
This section cited in 61 Pa. Code §
													109.8 (relating to earnings of
						  nonresident employes or casual employes and
						  officers).