PA-20S/PA-65 Schedule D: 2024 PA Schedule D - Sale, Exchange or Disposition of Property Within Pennsylvania (PA-20S/PA-65 D) (2024)
Pennsylvania · Pennsylvania DOR · Used for tax years 2024
PA-20S/PA-65 Schedule D reports gains and losses from the sale, exchange or disposition of property within and outside Pennsylvania. It calculates Pennsylvania-reportable amounts and records adjustments for differences between Pennsylvania and federal gains or losses.
Who files this form
PA S corporations, partnerships, and limited liability companies classified as partnerships or PA S corporations for federal income tax purposes use this schedule to report allocated gains and losses from the sale, exchange, or disposition of property within and outside Pennsylvania.
Entities must report sales, exchanges, or dispositions of capital assets and gains from distributing appreciated assets to partners, members, and shareholders.
What you'll need
Have these forms and records available, as applicable:
- The PA-20S/PA-65 Information Return, including the entity's name and nine-digit federal employer identification number (FEIN).
- PA-20S/PA-65 Schedule M and PA Schedules RK-1 and NRK-1.
- Federal Schedule D, Form 8825, Form 4797, and Schedules K and K-1 for the gains and losses being reported.
- Property records showing the property type and description, acquisition and sale dates, gross sales price, cost or other Pennsylvania basis, and Pennsylvania allowed or allowable depreciation.
- Federal and Pennsylvania gain or loss amounts for transactions requiring adjustments.
- Entity books and records showing gains or losses from sales of intangible portfolio investments for the nonresident adjustment on Schedule D-I, Line 15.
Common mistakes
- Assuming federal amounts work unchanged for Pennsylvania. The text warns that amounts from federal Schedule D and other federal forms may not be accurate for Pennsylvania personal income tax purposes.
- Reporting inventory sales as Schedule D gains. Sales, exchanges, or dispositions of inventory or stock-in-trade belong in net business income or loss.
- Entering cents. The form says to enter whole dollars only.
- Missing the ovals. Fill in the applicable oval for an amended schedule or a blank part. Fill in the loss oval for a loss, including a negative Pennsylvania/federal difference.
- Treating every intangible-asset gain as Pennsylvania-source income for nonresidents. The instructions note that such a gain or loss is not Pennsylvania-source unless the intangible property is employed in a Pennsylvania going concern.
Questions people ask
Which parts cover property inside and outside Pennsylvania?
Schedule D-I reports allocated gains and losses within Pennsylvania. Schedule D-II lists related Pennsylvania/federal adjustments. Schedule D-III reports gains and losses outside Pennsylvania, and Schedule D-IV lists related adjustments.
What if Pennsylvania and federal gains or losses are the same?
Leave the applicable adjustment schedule, D-II or D-IV, blank and fill in its blank oval.
How do I calculate the Pennsylvania/federal difference?
Subtract federal gain or loss from Pennsylvania gain or loss. If the difference is negative, fill in the loss oval. List each transaction requiring an adjustment. Copy Schedule D-II or D-IV if you need room for additional properties.
Where do the totals go on the information return?
Enter Schedule D-I, Line 14 on Page 1, Section III, Line 5b of the PA-20S/PA-65 Information Return. Enter Schedule D-III, Line 14 on Page 1, Section III, Line 5a. Allocate Schedule D-I, Line 16 to the NRK-1s based on percentage interest.