PA-19: PA Schedule 19 - Taxable Sale of a Principal Residence (PA-19) (Revision)
Pennsylvania · Pennsylvania DOR · Used for tax years 2024, 2025, 2026
PA Schedule 19 determines whether gain from the sale of a principal residence can be excluded from taxable income on Pennsylvania Form PA-40. It also calculates taxable gain when the sale does not qualify for exclusion or the property was used for business purposes.
Who files this form
PA Schedule 19 determines whether gain from selling your principal residence can be excluded from Pennsylvania taxable income and calculates taxable gain when needed.
Complete and include Schedule 19 with your PA-40 if:
- The sale does not meet the requirements for excluding the gain.
- The additional limitations described in the schedule instructions apply.
- Part or all of the residence was used for a business purpose.
All taxpayers selling a principal residence should complete the Residential Use Questions to determine whether the schedule must be completed and included. If you qualify to exclude 100 percent of the gain, you generally do not need to include Schedule 19 with your PA-40.
You may still need to complete Section II to determine the gain for PA-40 Schedule SP, Special Tax Forgiveness, or the gain or loss for PA-1000, Property Tax or Rent Rebate Claim Form.
What you'll need
Have the following information ready to complete the schedule:
- Your name as shown on PA-40, your Social Security number, and your spouse’s name and Social Security number if filing jointly.
- The address of the residence sold, the acquisition date, and the disposition date.
- Your ownership and residential-use history, any prior principal residence sale within the preceding two years, and any business use during your ownership.
- Your ownership share, the sales price or value received, and expenses of sale.
- The property’s adjusted basis, generally its original cost plus improvements minus depreciation allowed or allowable.
- The face value of any seller-financed mortgage, note, or other financial instrument requiring periodic principal and/or interest payments.
For business-use property, you may also need fair market values, residential and total square footage, and the basis of the nonresidential portion. For property acquired before June 1, 1971, the text directs you to PA Schedule D-71, Form REV-1742, to determine alternative basis.
How to file
Include the completed PA Schedule 19 with your PA-40 when the sale does not qualify for exclusion, additional limitations apply, or part or all of the residence had business use.
Report taxable gain from the residential portion on Line 7 of PA Schedule D. Report gain from the business-use portion on Line 8 of PA Schedule D.
If you meet the requirements for full exclusion and had no business use, do not include Schedule 19 with your PA-40. Follow the separate reporting instructions for Schedule SP or PA-1000 when applicable.
The supplied text does not provide a mailing address or e-filing instructions.
Common mistakes
- Assuming one spouse’s eligibility always covers both spouses. The text warns that spouses filing separate PA returns must each meet the exclusion requirements. On a joint PA return, only one spouse must meet them. Unmarried joint owners must qualify separately.
- Assuming ownership and use must occur at the same time. The text notes that these requirements do not have to be met simultaneously, but both must be met within the five years before the sale.
- Including former business space as residential-only space. Line 2a specifically says not to include any portion used for business at any time during ownership.
- Leaving excluded gain out of benefit calculations. The text reminds taxpayers that excluded gain must be reported on Line 8 of Section III of Schedule SP, and excluded gain or loss must be included on Line 8 of PA-1000, when using those forms.
Questions people ask
What are the basic requirements for excluding the gain?
The disposition must be after December 31, 1997. You must meet both the use and ownership requirements for at least two years during the five years before disposition. You also must not have sold another principal residence during the preceding two years, subject to the unforeseen-circumstances exception.
Does Pennsylvania use the federal gain limits?
No. The text states that Pennsylvania does not follow the federal gain limits. The entire gain may be excluded when the requirements are met and applicable limitations do not prevent exclusion.
What if I used part of my home for business in the past?
A portion leased or used for business with the intention of making a profit, and subject to an allowance for depreciation during ownership, does not qualify for exclusion. This applies even if you stopped claiming home-office expenses. Complete Section I to determine the residential-use percentage.
Can I deduct a loss on the residential portion?
No. A loss on the sale of a principal residence is a personal loss and is not allowable for Pennsylvania personal income tax purposes.
Can I qualify if I sold another principal residence within two years?
A second sale is not disqualifying if it results from an unforeseen change in employment, health, or severe financial hardship. The text describes an unforeseen change as an unexpected event beyond your control, such as an accident, illness, casualty, or loss of property.