PA-20S/PA-65 Schedule D: 2025 PA Schedule D - Sale, Exchange or Disposition of Property Within Pennsylvania (PA-20S/PA-65 D) (2025)
Pennsylvania · Pennsylvania DOR · Used for tax years 2025
PA-20S/PA-65 Schedule D reports gains and losses from the sale, exchange or disposition of property within and outside Pennsylvania. It calculates reportable gains and losses and includes adjustments for differences between Pennsylvania and federal tax treatment.
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 Schedule D to report allocated gains and losses from sales, exchanges, or dispositions of property within and outside Pennsylvania.
Entities must report sales, exchanges, or dispositions of capital assets, as well as gains on distributions of appreciated assets to partners, members, and shareholders.
What you'll need
Have the following forms and records available, as applicable:
- Your PA-20S/PA-65 Information Return, including the business name and nine-digit federal employer identification number (FEIN).
- PA-20S/PA-65 Schedule M, which supplies amounts used on Schedule D.
- Federal Schedule D, Schedule K, Schedule K-1, Form 8825, and Form 4797 for the gains and losses referenced on the schedule.
- PA Schedules RK-1 and NRK-1 showing gains or losses from pass-through entities.
- 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.
- 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
- Using federal figures without checking Pennsylvania rules. The text warns that amounts from federal Schedule D and other federal forms may not be accurate for Pennsylvania personal income tax purposes.
- Treating inventory sales as Schedule D gains. Sales, exchanges, or dispositions of inventories and stock-in-trade belong in net business income or loss.
- Overlooking the reinvestment rule. Gains and losses are classified as net profits when proceeds are reinvested in like-kind property used in the same line of business within the same entity. The line of business is defined by the NAICS code.
- Treating all intangible-asset gains as Pennsylvania-source income for nonresidents. The text notes that these gains or losses are not Pennsylvania-source unless the intangible personal property is employed in a Pennsylvania going concern.
- Entering cents or missing loss ovals. The form calls for whole dollars only. Fill in the loss oval when reporting a loss, including a negative Pennsylvania/federal difference in Parts II and IV.
Questions people ask
Does this schedule cover property outside Pennsylvania?
Yes. Schedule D-I reports allocated gains and losses within Pennsylvania, and Schedule D-III reports those outside Pennsylvania. Schedules D-II and D-IV provide transaction details for Pennsylvania/federal adjustments within and outside Pennsylvania, respectively.
What if there is no difference between the Pennsylvania and federal gain or loss?
Leave the applicable adjustment schedule, D-II or D-IV, blank and fill in its blank oval.
What if I need room for more properties?
Copy Schedule D-II for additional properties within Pennsylvania or Schedule D-IV for additional properties outside Pennsylvania.
Where do the totals go on the PA-20S/PA-65 Information Return?
Enter Schedule D-I, Line 14, on Page 1, Section III, Line 5b. 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.
How are mutual fund capital gain distributions treated?
Pennsylvania treats capital gain distributions from mutual funds and other regulated investment companies as dividend income on the owner's personal income tax return.