PA-40 Schedule D: 2025 PA Schedule D - Sale, Exchange, or Disposition of Property (PA-40 D) (2025)
Pennsylvania · Pennsylvania DOR · Used for tax years 2025
PA-40 Schedule D reports gains and losses from the sale, exchange, or disposition of property, including stocks, bonds, real estate, and business or personal property. It also reports certain taxable distributions and calculates the total Pennsylvania taxable gain or loss to ente
Who files this form
Complete and include PA Schedule D with your originally filed 2025 PA-40 if you have any transactions involving the sale, exchange, or disposition of property, even if your only transaction reports a loss.
The schedule covers stocks, bonds, real estate, business interests, business and rental property, property held by a pass-through entity, and other investment or personal property, including inherited property.
You and your spouse generally must prepare separate schedules. You may use one joint schedule if all gains and losses were realized jointly. One spouse cannot use a loss to reduce the other spouse’s gains.
What you'll need
Have the following information ready:
- The taxpayer’s name and Social Security number. On a jointly filed return, use the primary taxpayer’s name and SSN, even when reporting the spouse’s income.
- Property descriptions, acquisition and sale dates, sales proceeds, selling expenses, and cost or adjusted basis.
- For like-kind exchanges, the addresses of the property owned and the property received.
- Brokerage or summary statements, if you use them instead of listing eligible transactions individually. Include a copy with the return.
Depending on your transactions, you may also need:
- 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 PA S corporation or partnership gains and losses. If these are not provided, use the appropriate federal Schedule K-1 amounts. Include a statement listing each entity’s name, FEIN, and gain or loss.
- PA Schedule 19 for taxable gain from selling a principal residence, or if any portion of the residence was used for business or rental purposes.
- REV-999 for partnership distributions exceeding ownership basis, or REV-998 for PA S corporation distributions exceeding ownership basis. Complete and submit the applicable worksheet with your PA-40.
How to file
Include your completed PA Schedule D with your PA-40. Report transactions in the year they occurred, using Pennsylvania income tax rules and Pennsylvania basis.
For an electronically filed return, brokerage or summary statements must be included as a PDF attachment or faxed to the department, unless copies of the brokerage statements are already included with the federal e-filed return. The supplied text does not give a mailing address or fax number.
If you discover an increase or decrease in previously reported Schedule D income, include an amended PA Schedule D with Schedule PA-40 X. Explain the change in Section III on page 2 of Schedule PA-40 X.
Common mistakes
- Using federal Schedule D instead of PA Schedule D. The text warns that federal amounts may not be correct for Pennsylvania tax purposes.
- Using one spouse’s loss to reduce the other spouse’s gain. This is not allowed.
- Using the joint oval when either spouse also reports a separate gain or loss. In that case, split jointly owned transactions between the spouses’ separate schedules.
- Deducting a personal-property loss. Only losses from transactions entered into for profit may be deducted. Fill in the loss oval when reporting an allowable loss.
- Electing installment reporting for an ineligible transaction. The installment method cannot be elected for gains from intangible personal property, such as stocks, bonds, or partnership interests, or for transactions whose object is lending money or providing services.
Questions people ask
When should I answer “Yes” to the digital asset question?
Answer “Yes” if, at any time during 2025, you received a digital asset as a reward, award, or payment for property or services, or sold, exchanged, or otherwise disposed of a digital asset or a financial interest in one.
Can I use a brokerage summary instead of listing every sale?
Yes. The text permits brokerage statements or separately prepared summaries for the specified financial transactions instead of individual entries. Include a copy with your return. All other transactions must be entered separately on PA Schedule D.
Is gain from selling my main home always taxable?
No. Pennsylvania excludes qualifying gain from selling a principal residence. 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. If the gain does not qualify for exclusion, report the taxable gain. If the sale produced a loss, enter zero.
Should I enter dollars and cents?
No. Use whole dollars. Drop amounts below $0.50 and round amounts of $0.50 or more up to the next dollar.