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I have to prepare a PA income tax return Sold house 4/4/24 - purchased 2/1/18 gain 95,598 Lived in house two of the five years preceding the sale-gain should be exempt. All PA property.
He also sold another house 12/12/24-purchased 12/12/24. There was a loss 39,436. All PA property.
All information from Federal Form 8949 flowed over to sch D. There is no gain on Federal Tax Return
On Pa return there are 2 sch Ds, one for each taxpayer. Same information flowed over 50% for each form. On line 11 there is a net gain.
Form PA-19 Complete Section II and all information relating to the sale which is line 7 and line 12. I prepare 2 PA-19
However, there is a gain and the Taxpayer is taxed at PA Income tax rate of 3.09%.
Help!! What did I do wrong and thank you
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Not too sure, but PA splits all sales 50-50 between spouses if they are coded J. Are gain and loss sales each coded J on the 8949 entries?
Also, only one sale should go on the PA19, not both.
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"He also sold another house 12/12/24-purchased 12/12/24. There was a loss 39,436."
You didn't specify if that was investment property or just a bad purchase of personal property, and the loss isn't deductible (for Fed, at least).
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This was a personal houses in PA
I also made an error on dates
House A purchased 2/1/18, Sold 4/4/24 gain 95,596 met reguirements 2 out of 5 years
House B purchase 10/14/24 Sold 12/1124 loss (39395)
Other details, He purchased 2nd house but first house was vacant until he told it on 4/4/24
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there are 2 PA 19 for PA
Federal Jointly owned
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One PA 19 for each spouse? The second house doesn't get an exclusion and is a personal loss.
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Thank you. How is this transaction entered on Pro Series. Presently there is a gain and the taxpayer is taxed on the first house gain
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Federal to verify 2nd house loss is reduce from gain of sale from first house
Pa 2nd house is just loss
How is this entered in ProSeries
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What is this comment: "Federal to verify 2nd house loss is reduce from gain of sale from first house"
You can't net the two houses. You already had a full exclusion anyway, from the primary residence gain. You can't reduce it more.
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I finally got thru to PA Dept of Revenue after trying many times this week.
Her answer is: He loses the exclusion because he sold the 2nd house 8 months after the sales of the first house.
I thank you for all of your help and information. Pa law is different from Federal law.
