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A client moved from CA to PA mid year. She sold her personal residence in CA while a PA resident. Does PA tax that gain?
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I assume the gain exceeds the 250k/500k exclusion, if applicable? Taxable gain will be taxed by CA because it is CA property, regardless of residency. PA provides a resident tax credit for the amount of income sourced to, and taxed by, CA.
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Does PA allow the $250/500K exclusion? I know they tax lots of things that the federal gov't doesn't.
The more I know the more I don’t know.
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Good point. In general, if eligibility requirements are met, PA doesn't tax gains on the sale of a principal residence. I had been thinking that only applies to in state residences, but it looks like they will simply fully exclude the gain on PA Schedule 19 regardless.
Of course, CA will still view it as CA sourced income.
