PA-40 Schedule D: 2024 PA Schedule D - Sale, Exchange, or Disposition of Property (PA-40 D) (2024)
Pennsylvania · Pennsylvania DOR · Used for tax years 2024
PA-40 Schedule D reports gains and losses from the sale, exchange, or disposition of property for Pennsylvania personal income tax purposes. It also reports certain taxable distributions and calculates the total Pennsylvania taxable gain or loss to enter on your PA-40.
Who files this form
Complete and include PA Schedule D with your original 2024 PA-40 if you had any sale, exchange, or other disposition of property, even if the only transaction resulted in a loss.
The schedule covers stocks, bonds, real estate, business interests, business and rental property, property held by pass-through entities, and other investment or personal property, including inherited property.
Spouses generally must prepare separate schedules. One joint schedule may be used if all gains and losses were realized jointly. If either spouse also has separate gains or losses, split the joint transactions between their separate schedules.
What you'll need
Have the property description, acquisition and sale dates, sales price, selling expenses, and cost or adjusted basis for each transaction.
Depending on your transactions, you may also need:
- Brokerage or summary statements: Include a copy with your return if you use a statement instead of listing eligible transactions individually.
- PA Schedule D-1 (REV-1689): For installment-sale income.
- PA Schedule D-71 (REV-1742): For sales of June 1, 1971 property. Include it with your PA-40.
- PA Schedules RK-1 or NRK-1: For pass-through gains or losses. If unavailable, use the appropriate federal Schedule K-1 amounts. Include a statement listing each entity’s name, FEIN, and gain or loss.
- PA Schedule 19: Complete and submit it when reporting taxable gain from selling a principal residence or when any portion of the residence was used for business or rental purposes.
- REV-999 or REV-998: Complete and submit the applicable worksheet for partnership or PA S corporation distributions that exceed your ownership basis.
How to file
Include PA Schedule D with your PA-40. Report transactions using Pennsylvania income tax rules and Pennsylvania basis in the year the transaction occurred.
- Enter the taxpayer’s name and Social Security number. On a jointly filed return, use the primary taxpayer’s name and SSN even on a schedule reporting the spouse’s income.
- Select the taxpayer, spouse, or joint oval as appropriate.
- Enter transactions and applicable amounts on Lines 1 through 10. Use whole dollars, rounding amounts below $0.50 down and amounts of $0.50 or more up.
- Add Lines 2 through 10 on Line 11 and carry the result to PA-40, Line 5, applying the separate-spouse rules when relevant.
Electronic returns: Required brokerage or summary statements must be attached as a PDF or faxed to the department unless copies of the brokerage statements are already included with the federal e-filed return. The text does not provide a fax number or mailing address.
Corrections: Include an amended PA Schedule D with Schedule PA-40 X if you discover an increase or decrease in previously reported income. Explain the change in Section III on page 2 of Schedule PA-40 X.
Common mistakes
- Using federal Schedule D instead of Pennsylvania’s schedule. The text warns not to use federal Schedule D to report these gains and losses.
- Offsetting one spouse’s gains with the other spouse’s losses. This is not allowed.
- Selecting “joint” when either spouse also has separate gains or losses. Split the joint transactions between separate schedules instead.
- Deducting personal-property losses. Only losses from transactions entered into for profit may be deducted. Mark the loss oval when reporting an allowable loss.
- Using installment reporting for ineligible transactions. The installment method cannot be elected for intangible personal property, such as stocks, bonds, or partnership interests, or for transactions whose object is lending money or providing services.
Questions people ask
Do I need Schedule D if my only transaction was a loss?
Yes. The text requires the schedule even when the only transaction is to report a loss.
Can I report a loss from selling my personal car or furniture?
No. For property that was not income-producing, enter zero rather than a loss in Column (f).
Is a gain from selling my main home taxable?
A qualifying gain is excluded. Generally, the gain is exempt if you owned the home and used it as your principal residence for at least two of the five years before the sale. Report taxable gain on Line 7 if you do not qualify. Enter zero for a loss on the residence, and report any gain or loss on its business or rental portion on Line 1.
Can I summarize stock sales instead of listing each sale?
Yes. Brokerage statements or separately prepared summaries may be used for eligible stock, bond, and other financial-instrument transactions. Include a copy with your return. All other transactions must be entered separately.