REV-999: Partner PA Outside Tax Basis in a Partnership Worksheet (REV-999) (Revision 2012-08)
Pennsylvania · Pennsylvania DOR · Used for tax years 2024, 2025, 2026
REV-999 is a worksheet for calculating a partner’s Pennsylvania outside tax basis in a partnership. It tracks beginning basis, increases for contributions and income, and decreases for distributions, losses, credits and other expenses to determine ending basis.
What you'll need
Have the following information available to complete the worksheet:
- Partnership name and EIN, partner’s name and SSN, and tax year.
- Prior-year ending basis, unless this is the first year.
- Amounts for contributions, changes in partnership liabilities, income, and distributions.
- Loss amounts from RK-1/NRK-1, amounts used to offset PA-40 income in the same class, and the partner’s share of straight-line depreciation.
- Amounts for PA business credits and other decreases to basis, including nondeductible expenses.
Submit a detailed statement for other increases to basis on Line 4h and other decreases to basis on Line 13.
Common mistakes
- Using the wrong beginning basis. Enter the prior-year ending basis on Line 1, or zero if this is the first year.
- Letting distributions make basis negative. Basis cannot fall below zero because of distributions. Distributions above basis are taxed as gains for Pennsylvania purposes.
- Skipping a basis reduction because a loss gave no tax benefit. The worksheet says the partner must still reduce basis by the partner’s share of straight-line depreciation. A partial tax benefit requires a reduction for the loss used plus a portion of that depreciation.
- Entering a negative ending basis. Line 14 cannot be less than zero.
- Leaving out required details. Lines 4h and 13 each call for a detailed statement.
Questions people ask
What goes on Line 1?
Enter the prior-year ending basis, or zero if this is the first year.
What increases a partner’s basis on this worksheet?
The worksheet lists cash contributions, property contributions at adjusted value, services at fair market value if taxed, increases in assumed partnership liabilities, and the listed income amounts. Interest and dividend income are marked “resident only.” Other increases require a detailed statement.
What happens if distributions exceed basis?
Basis cannot be less than zero because of distributions, and the excess is taxed as a gain for Pennsylvania purposes. If Line 7a is negative, enter zero on Line 7 and the Line 7a amount on Line 7c. The worksheet directs you to enter Line 7c on PA-40 Schedule D, Line 8.
Does a loss reduce basis if it does not provide a tax benefit?
Yes. The worksheet requires a reduction for the partner’s share of straight-line depreciation when a distributable loss provides no tax benefit. If the loss provides a partial benefit, reduce basis by the loss used plus the unused fraction of the loss multiplied by the partner’s share of straight-line depreciation. If the loss provides a full benefit, reduce basis by the full loss.