General Information For Rct-143 (Page 5 of 6) in pdf

RCT-143 – Line-by-Line Instruction

RCT-143-I (10-12)

Page 5 of 6

Receipts Factor - The numerator (a) is total receipts in Pennsylvania and the denominator (b) is the total receipts in all states. Receipts

do not include principal repayments on loans or credit, or travel or entertainment cards. Receipts from the sale or disposition of property

include only the net gain from the sale.

Determine the location of receipts as follows:

Line 2 - Receipts from loans are located at the place of origin. Receipts from loans primarily secured by real property are assigned to

the state in which the predominant portion of such property is located, if the institution has an office in that state at which application,

negotiation, approval or administrative responsibility occurs. Receipts from all other loans are assigned to the state of residency or com-

mercial domicile of the borrower, if the institution has an office in that state at which application, negotiation, approval or administra-

tive responsibility occurs. Otherwise, receipts from loans are assigned to the state where the office is located that treats the loan as an

asset on its books or records.

Line 3 - A receipt from performance of services is located in the state where the services are performed. If services are performed in

more than one state, the receipts located in each state must be measured by the ratio of time spent performing such services in one

state to the total time spent performing services in all states. The time spent performing services in a state is the time spent by employ-

ees having a regular presence in the state performing such services.

Line 4 - Receipts from lease transactions are located in the state where the leased property is located.

Line 5 - Interest or service charges – excluding merchant discounts from credit, travel and entertainment card receivables and credit

card holders’ fees – are located in the state where the credit card holder resides. If the taxpayer is a corporation maintaining a com-

mercial domicile, such charges are in the state of the card holder’s commercial domicile. Otherwise, receipts are located in the state

where the institution maintains an office that treats such receivables as assets on its books or records.

Line 6 - Interest, dividends and net gains from the sale or disposition of intangibles, excluding receipts described elsewhere in this sec-

tion, are located in the state where the institution maintains an office that treats such intangibles as assets on its books or records.

Line 7 - Traveler’s checks and money order fees or charges are located in the state where the traveler’s checks or money orders are

issued.

Line 8 - Receipts from sales of tangible property are located in the state where the property is delivered or shipped, regardless of the

free on board (FOB) point or other condition of sale.

Line 9 - Receipts from the issuance of title insurance are located in the state where the insured property is located.

Line 10 - All receipts not specifically addressed above are located in the state where the greatest portion of income-producing activi-

ty is performed, based on costs of performance.

Line 11 - Enter total receipts (sum of Lines 2 through 10, Columns a and b).

Deposits Factor

Line 12 through Line 17 - The numerator (a) is the average value of deposits in Pennsylvania during the taxable year, and the denom-

inator (b) is the average value of total deposits during the taxable year. The average value of deposits is to be calculated on a quarterly

basis. Deposits are located in the state where the institution maintains an office that treats the deposits as a liability on its books or records.

A deposit is considered properly treated as a liability on the books or records of the office with which it has a greater portion of contact.

In determining whether a deposit has a greater portion of contact with a particular office, consideration is given to the following:

• Whether the deposit account was opened at or transferred to that office by or at the direction of the depositor, regardless of where

subsequent deposits or withdrawals are made

• Whether employees regularly connected with that office are primarily responsible for servicing the depositor’s general banking and

other financial needs

• Whether the deposit was solicited by an employee regularly connected with that office, regardless of where such deposit was actu-

ally solicited

• Whether the terms governing the deposit were negotiated by employees regularly connected with that office, regardless of where

the negotiations were actually conducted

• Whether essential records relating to the deposit are kept at that office and whether the deposit is serviced at that office.

Page 3 – Schedule C - Apportionment Summary

Calculation of Net Income Tax Apportionment

Line 6 - Payroll Inside PA

Enter the figure from Page 4, Schedule D, Line 1a.

Line 7 - Total Payroll

Enter the figure from Page 4, Schedule D, Line 1b.

Line 8 - Payroll Factor

Enter the product of Line 6 divided by Line 7. Carry to six decimal places.

Line 9 - Receipts Inside PA

Enter the figure from Page 4, Schedule D, Line 11a.

Line 10 - Total Receipts

Enter the figure from Page 4, Schedule D, Line 11b.

Line 11 - Receipts Factor

Enter the product of Line 9 divided by Line 10. Carry to six decimal places.

Line 12 - Average Deposits Inside PA

Enter the figure from Page 4, Schedule D, Line 17a.

General Information For Rct-143 Page 5

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