SiC crystals grown by physical vapor transport were inspected by optical microscopy. Polytype inclusions of 6H were observed in 4H crystals and inclusions of 15R were observed in both 6H and 4H crystals. Evidence is provided that these polytype inclusions nucleate at the edge of the basal plane growth facet where island growth is more likely. Micropipes are seen to nucleate at polytype boundaries, suggesting these inclusions lead to the nucleation of micropipes.