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