Stuart Bronstein <spamtrap[at]lexregia.com> writes:
- quote -

As a Philadelphia resident, your net profits are taxable to
Philadelphia. Your BPT is based on gross receipts. You may
apportion those receipts to reduce the Phila tax burden but
that may not significantly reduce taxes. In addition to
your current year's tax, you must always pay a year in
advance.

The City of Philadelphia’s BPT is authorized by the
Commonwealth of Pennsylvania’s First Class City Business
Tax Reform Act (53 P.S. § 16181 et seq.).

This enabling legislation allows a city of the first class
(i.e. Philadelphia), in spite of any other Commonwealth
provision to the contrary, to tax every “person”
engaging in any “business” within the City of
Philadelphia. The Commonwealth statute does not specify that
a person must have a physical location within the City of
Philadelphia in order to be subject to the BPT. This point
is emphasized in the BPT ordinance at Philadelphia Code
§19-2603(3) which states,” (p) hysical presence (the
maintenance of an office or property) in the City is not
required to establish active presence in the City”. If
QED (or any other similarly-situated taxpayer) were to
engage in the performance of building construction services
(or any other service) within the City of Philadelphia, the
PHLDOR would assert nexus for the BPT in spite of that
taxpayer’s payment of a privilege or transaction tax on
all of their receipts (i.e.100%) to their home township
(e.g. Radnor). The City would not have to provide any credit
on the BPT for taxes paid on the same receipts to the home
township.

"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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JohnA wrote:

- quote -

While not absolutely required, it is highly recommended that
you have a home base that you treat as your "place of
business." If you don't, you won't be able to deduct (for
federal income tax purposes) any of your travel expenses to
the places you perform your inspections.

Stu

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I live in Philadelphia and own a small business (home
inspecting). I perform some inspections in the City, but
most outside the City. I do not have a "place of business"
in the City. All my business activity takes place at the
location of the home inspection. Should I be including
income from inspections in the suburbs on my BPT return?

Thanks.
JohnA

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