Cap gain on sale of residence

[TSRTSLa1]

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?

[TaxGirl3]

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. 

[sjrcpa]

Does PA allow the $250/500K exclusion? I know they tax lots of things that the federal gov't doesn't.

[TaxGirl3]

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. 

See https://www.revenue.pa.gov/FormsandPublications/PAPersonalIncomeTaxGuide/Documents/PITGuide_NetGains...

Of course, CA will still view it as CA sourced income.