PA-20S/PA-65 Schedule H-Corp: 2024 PA Schedule H-Corp - Corporate Partner Apportioned Business Income (Loss) (PA-20S/PA-65 H-Corp) (2024)
Pennsylvania · Pennsylvania DOR · Used for tax years 2024
PA Schedule H-Corp is an informational schedule that partnerships provide to business-entity partners for corporate net income tax apportionment. It reports sales and receipts inside Pennsylvania and everywhere, along with the Pennsylvania apportionment figure.
Who files this form
Schedule H-Corp is for information purposes only. Partnerships must complete it and provide a copy to partners that are:
- Partnerships.
- Limited liability companies (LLCs).
- C corporations.
- S corporations that are not Pennsylvania S corporations.
Complete the schedule if the partnership has business income from both inside and outside Pennsylvania, or entirely within Pennsylvania. A partnership with no Pennsylvania activity must still complete the schedule showing its total sales.
Corporate partners use their share of the information to calculate their own Pennsylvania corporate net income tax apportionment.
What you'll need
Have these records and details available:
- The partnership’s PA-20S/PA-65 Information Return, for its business name and nine-digit federal employer identification number (FEIN).
- The date the partnership’s taxable period ended.
- Federal Form 1065 information. Any amounts that do not agree with it must be reconciled.
- Pennsylvania and everywhere sales and receipts figures, including net sales, interest, rents, royalties, gross sales prices of assets other than securities, other sales receipts, and the partner’s share of sales from partnerships.
- For entities using special apportionment, the applicable revenue-mile, pipeline-capacity, or port-day information described in the schedule’s instructions.
Common mistakes
- Not providing copies to entity partners. The partnership may face a $250 penalty per schedule if it fails to provide Schedule H-Corp to entity partners.
- Skipping the schedule because there is no Pennsylvania activity. The partnership must still complete it showing total sales.
- Using the schedule to calculate a non-corporate owner’s income. The text specifically warns against this use.
- Using the single sales factor for an entity that requires special apportionment. Railroad, truck, bus, airline, pipeline, natural gas, and water transportation entities must use special apportionment instead.
Questions people ask
How is the sales factor calculated?
Divide Line A, the partnership’s gross receipts inside Pennsylvania, by Line B, its gross receipts everywhere. Gross receipts are net of returns and allowances. Calculate the result to six decimal places.
Are any receipts excluded from the sales factor?
Yes. Exclude dividends and income from U.S. securities from both the numerator and denominator. Also exclude receipts from sales of securities unless the partnership is a securities dealer.
How does a corporate partner use this schedule?
The corporate partner multiplies the partnership’s gross receipts by its ownership percentage to determine its share. It includes its share of Pennsylvania receipts in its own sales-factor numerator and its share of receipts everywhere in its denominator.
What if the partnership must withhold tax for a nonfiling corporate partner?
If the partnership is required to withhold corporate net income tax for a nonfiling corporate partner, it must complete Schedule CP. It uses the Pennsylvania apportionment figure from Schedule H-Corp to calculate that withholding.