Pennsylvania Schedule D Instructions
PA SCHEDULE D (LINE 5)
Do not submit a federal Schedule D. A taxpayer and spouse must complete separate schedules to report their gains or losses or if any amounts are reported on Lines 3 through 10. However, if all the gains and losses were realized on a joint basis, one schedule may be completed. Complete the oval to indicate whether the gains and losses included on the schedule are from the taxpayer, spouse or joint.
IMPORTANT: One spouse may not use a loss to reduce the other spouse's gains. In the case where separate Schedule Ds are required and spouses must also report the sale of jointly owned property, each spouse must show his/her share of the sale on their separate PA Schedule D.
Report all sales, exchanges, and dispositions of property using PA income tax rules, and your PA income tax basis, in the year in which the transaction occurred. If a federal election allows a deferral to a different tax year or a deemed sale, you may not use that election for PA purposes.
Unless the specific instructions require a different Pennsylvania schedule, report each sale, exchange, or disposition of property on PA Schedule D.
- Columns (a) through (f)
- List and describe the property sold or otherwise disposed of for cash or for other property.
- Enter the month, day, and year acquired. If you acquired properties over time, you may enter VARIOUS.
- Enter the month, day, and year sold.
- Enter the gross sales price or fair market value of cash and property received less the applicable expenses of sale.
- Enter the cost or adjusted basis of the property sold.
- Determine whether your property was either I or II, and follow the appropriate instructions:
- If your property was income-producing property, such as stock, bonds, an ownership interest in a business, a rental property, a patent or copyright, or you held your property in connection with a business, profession, or occupation (but not inventory or an operational asset), then:
- Subtract Column (e) from Column (d). Enter either the gain or the loss or zero in Column (f).
- If your property was other than income-producing property (a personal automobile or furniture), then:
- If the adjusted basis is less than or equal to Column (d), enter the gain or zero in Column (f).
- If the adjusted basis is greater than Column (d), enter zero in Column (f). You cannot report a loss on the sale of personal property.
- IMPORTANT: You may only deduct losses from transactions you entered into for profit. Indicate a loss by filling in the oval.
CAUTION: For taxpayers reporting the sales of exempt obligations:
DO: Include the issue or DTD date of the exempt obligation in the description of the items sold.
DO NOT: Include the sales of any exempt obligations issued prior to Feb. 1, 1994. See Page 16 of the instructions for additional information regarding exempt obligations.
CAUTION: You may not elect the installment sales method for:
- Reporting gains from the sale of intangible personal property, such as stocks, bonds, partnership or other ownership interests; or
- Reporting transactions where the object is the lending of money or the rendering of services.