General Information For Rct-132a-I (Page 5 of 6) in pdf

RCT-132A-I – Line-by-Line Instruction

RCT-132A-I (1-14)

Page 5 of 6

PENNSYLVANIA TITLE INSURANCE COMPANY INSTRUCTIONS FOR APPORTIONMENT

Page 2 – Receipts Factor

Who may apportion?

A title insurance company may apportion its taxable shares or net income if the insurance company is or could be subject to tax in anoth-

er state based on or measured by net worth, gross receipts, net income or another similar base of taxation.

Determine the location of receipts as follows:

Receipts from the issuance of title insurance shall be located in the state in which the real property insured is located.

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

Line 15 - Receipts from Issuance of Title Insurance

Line 15a - Enter receipts Inside PA.

Line 15b - Enter receipts Everywhere.

Line 16 - Other Receipts (detailed schedule MUST be attached)

Line 16a - Enter receipts Inside PA.

Line 16b - Enter receipts Everywhere.

Line 17 - Total Receipts

Line 17a - Total receipts Inside PA; add Line 15a plus Line 16a.

Line 17b - Total receipts Everywhere; add Line 15b plus Line 16b.

Page 2 - Calculation of Shares Tax Apportionment

Line 12 - Total receipts Inside PA; carry the figure from Line 17a

Line 13 - Total receipts Everywhere; carry the figure from Line 17b

Line 14 - Receipts Factor (Line 12 divided by Line 13); carry to six decimal places

Page 2 - Calculation of Shares Tax

Taxable shares equal the total shares for the current year plus each of the preceding five years, divided by 6. An entity in existence fewer

than six years must total the shares for each of the years in existence and divide by that number of years. A partial year of existence is

considered a full year. The value of shares for a partial year is determined by adding the book values for each report of condition filed or

calendar quarter in existence and dividing the sum by the number of reports or quarters.

Line 1 - Current Year Value of Shares (from Page 3, Schedule A, Line 31)

Line 2 - First Prior Year Value of Shares

Line 3 - Second Prior Year Value of Shares

Line 4 - Third Prior Year Value of Shares

Line 5 - Fourth Prior Year Value of Shares

Line 6 - Fifth Prior Year Value of Shares

Line 7 - Sum of Value of Shares (total of Line 1 through Line 6)

Line 8 - Taxable Shares (Line 7 divided by 6 or the number of years in existence, if less than 6)

Line 9 - Shares Tax Apportionment (Line 14 - Receipts Factor); carry to six decimal places.

Line 10 - Total Amount of Shares Subject to Tax (Line 8 times Line 9)

Line 11 - Tax (Multiply Line 10 by 1.25 percent (0.0125). Carry the tax to RCT-132A, Page 1, Line 1a.

If the taxpayer is the survivor of a merger of one or more insurance companies, the History of Shares would include the sum of the prior

year value of shares of each insurance company.

Page 4 – Schedule B - Loans Tax

Question 1 - Foreign Corporations Only. Did this corporation have a fiscal officer resident in Pennsylvania?

• If the answer to Question 1 is “No”, stop here; put zero on Page 4, Line 10 and zero on Page 1, Line 1b.

• If the answer to Question 1 is “Yes”, complete Questions 2 and 3.

Question 2 - Did this corporation have indebtedness outstanding to individual residents and/or partnerships resident in Pennsylvania?

• If the answer to Question 2 is “No”, answer Question 3.

• If the answer to Question 2 is “Yes”, complete Columns 4, 5 and 6 in the table under Schedule B and complete Question 3.

Question 3 - Did this corporation have indebtedness outstanding held by a trustee, agent or guardian for a resident individual taxable in

its own right or by an executor or administrator of an estate wherein the decedent was a resident of Pennsylvania?

• If the answer to Question 2 and Question 3 is “No”, stop here; put zero on Page 4, Line 10, and zero on Page 1,

Line 1b.

• If the answer to Question 3 is “Yes”, complete Columns 4, 5 and 6 in the table under Schedule B.

If the answer to Question 2 or 3 is “Yes”, the taxpayer is required to complete Schedule B. Attach a separate schedule if additional space

is needed.

Column 4 - Enter the amount of interest paid on the indebtedness from Question 2 and/or Question 3 during the tax year reported.

Column 5 - Enter the rate of interest applicable to the indebtedness in Question 2 and/or Question 3.

Column 6 - Enter the nominal value of taxable indebtedness (divide Column 5 into Column 4). Then total the nominal values of

taxable indebtedness and enter the figure in the last space of Column 6 and on Line 7.

Line 7 - Enter the total taxable indebtedness from Schedule B, Column 6.

Line 8 - Tax: Multiply Line 7 by 4 mills (0.004).

General Information For Rct-132a-I Page 5

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