- quote -

Jack, are you sure about this? Wouldn't he only have to file
BPT and NPT if he is in the business of renting real estate?
If his rental acltivity qualifies as passive, wouldn't he
only have to pay the school income tax on the income?

--
D.F. Manno
dommanno[at]netscape.net
"They that can give up essential liberty to obtain a little
temporary safety deserve neither liberty nor safety."
(Benjamin Franklin)

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"D.F. Manno" <dommanno[at]netscape.net> writes:
- quote -

Dom, et al, here is a list of tax rates on types of business
related income in Philadelphia. It includes the taxes for
residents and non-residents:

http://www.phila.gov/revenue/pdfs/TA...ULE_6-2001.pdf

In regard to rental properties, in MOST cases, the income is
treated as business income subject to Business Privilege
taxes rather than the School Income Tax.

According to PM-102.8 - "Business Privilege License: No
person shall offer for rent any dwelling or dwelling unit
without first obtaining a business privilege license
pursuant to Section 19-2602 of The Philadelphia Code."

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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- quote -

Philadelphia does have a business priviledge tax. The
rules are here:

http://www.phila.gov/li/pdfs/GoodHousing.pdf

There is a one time fee of $250 for the priviledge of paying
this tax whether or not you make a profit. There is also an
annual license fee for real estate.

Most real estate produces a loss so the tax generally is
quite minimal (.0024 on the gross receipts). If there is a
profit, the tax on the net is 6.5% on one form and 4.5^ on
another. There is a 60% reduction in the 4.5% net profit
tax for the tax paid on the BPT form.

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

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"Gita" <gfaust[at]fasttrackaccounting.com> wrote:

- quote -

The School District of Philadelphia imposes a school income
tax on certain unearned income, including rental income. The
amount of income as reported on federal Schedule E is
subject to a tax of 4.4625 percent.

Assuming that the 1099 is self-employment income, and that
you are not incorporated, you would be subject to the
business privilege tax and the net profit tax. The BPT is
2.3 mills on gross receipts and 6.5 percent on net income.
The NPT is 4.4625 percent on net income. There's also a
one-time fee of $250 for a business privilege license.

(These rates are for the 2003 tax year and apply to
residents. Non-residents whose business or rental property
is located in Philadelphia pay lower rates. The mayor and
the city council are wrangling over a tax reform plan that
could change the rates for 2004.)

Pennsylvania state income tax would apply to the
self-employment income and the rental income (with some
adjustments). The 2004 rate is 3.04 percent. Unlike the
federal return, you may not deduct losses from other income.

--
D.F. Manno
dommanno[at]netscape.net
"They that can give up essential liberty to obtain a little
temporary safety deserve neither liberty nor safety."
(Benjamin Franklin)

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Philadelphia Tax, Receive 1099, rent house, Appx what
taxes will to pay, Is there a Business Previlege tax. PA
tax is appx 4%. Want to consider all the tax before Moving.
Gross tax, net tax. .

Gita

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