REV-934: Schedule of Nonbusiness Income (REV-934) (Revision)

Who files this form

REV-934 is a corporation’s schedule for reporting nonbusiness income allocated inside and outside Pennsylvania. Taxpayers completing this schedule must provide the supporting statements and other information requested on the form.

What you'll need

Have the corporation’s name, FEIN, tax year beginning and ending dates, and nonbusiness income amounts available.

The form requires these supporting materials:

• A statement describing the income’s source, how it arose, and the taxpayer’s involvement in generating it.
• A statement explaining why the income is not subject to apportionment under the U.S. Constitution.
• If related expenses, liabilities, deductions, or credits were claimed in the current or prior tax years, a statement listing the amounts by income item and year.
• If the taxpayer or a predecessor reported income from the same source as apportionable business income in Pennsylvania or another jurisdiction, a statement identifying the years and jurisdictions and explaining the change to nonbusiness treatment.
• If 100 percent of the total nonbusiness income reported to Pennsylvania was allocated to one other state, the state’s name and a copy of that corporate tax return. Otherwise, complete Part B for the current tax year.
• If any nonbusiness income was reported as unitary income outside Pennsylvania, an explanation and a list of those states.
• An explanation for income entered under “Other.”

Part B also calls for an explanation if less than 100 percent of the income reported as nonbusiness income to Pennsylvania is allocated to other jurisdictions. Attach additional details for New York investment capital and for each local Ohio jurisdiction where the taxpayer filed, when applicable.

Common mistakes

• Reporting gross amounts: All amounts must be shown net of related expenses.
• Including cents: Use whole dollars only.
• Combining income items on Part B: The form requires a separate Part B for each Part A line item.
• Omitting Part B explanations or details: Attach an explanation when less than 100 percent of the income reported as nonbusiness income to Pennsylvania is allocated to other jurisdictions. Provide the requested details for New York investment capital and each local Ohio jurisdiction where the taxpayer filed, when applicable.

Questions people ask

What kinds of nonbusiness income does Part A list?

Part A lists net rents and royalties from real and tangible personal property; gains or losses from sales of real, tangible personal, and intangible personal property; interest other than interest from U.S. securities; royalties from patents and copyrights; and other income with an attached explanation.

How are the Part A columns organized?

Column A is for income allocated inside Pennsylvania. Column B is for income allocated outside Pennsylvania. Column C is the total.

Where do I transfer the totals on RCT-101?

Transfer the Column A total to RCT-101, Section C, Line 9. Transfer the Column C total to RCT-101, Section C, Line 5.

When does the form tell me to complete Part B?

If 100 percent of the total nonbusiness income reported to Pennsylvania was allocated to only one other state, identify that state and provide a copy of its corporate tax return. If not, complete Part B for the current tax year. The form requires a separate Part B for each Part A line item, with amounts reported net of related expenses.

Official sources

• https://www.pa.gov/content/dam/copapwp-pagov/en/revenue/documents/formsandpublications/formsforbusinesses/corporationtax/documents/rev-934.pdf