REV-1742: PA Schedule D-71 - Sale or Exchange or Property Acquired Prior to June 1, 1971 (REV-1742) (Revision)
Pennsylvania · Pennsylvania DOR · Used for tax years 2024, 2025, 2026
Pennsylvania Schedule D-71 reports gains or losses from the sale or exchange of property acquired before June 1, 1971. It records property descriptions, acquisition and sale dates, sales prices, basis amounts, and the total net gain or loss.
Who files this form
You must use Pennsylvania Schedule D-71 if you are claiming an alternative basis for property acquired before June 1, 1971, that you sold or exchanged.
The special basis rules also apply to property you received as a gift if the donor acquired it before June 1, 1971.
What you'll need
Have the following information ready:
- The owner's name as shown on the Pennsylvania tax return and Social Security number.
- A description of each property, such as the company name and number of shares or the property's address.
- The dates the property was acquired and sold.
- The sales price or fair market value of cash and property received, and applicable selling expenses.
- Information needed to calculate adjusted and alternative basis, including original cost, improvements, depreciation, and contributions or recoveries of capital.
- The valuation information for your chosen method: listed security, appraisal, proration, or deemed value.
If you use the appraisal method, attach a copy of the appraisal to your return. It must exclude improvements made after May 31, 1971, and be a bona fide, independent appraisal written by a competent appraiser of recognized standing and ability.
The form also asks you to attach an explanation if the property was not purchased.
Common mistakes
- Using the wrong basis to calculate gain or loss. The instructions caution you to follow Column F to determine whether to use adjusted or alternative basis.
- Using proration when it is not allowed. Do not use it if you suffered a fire, storm, or other casualty loss; incurred demolition costs or losses during your holding period; or acquired the property by gift after May 31, 1971. It is also barred if the entity in which you hold an interest was a party to a reorganization, consolidation, or merger, or if other events during your holding period make its use inappropriate.
- Counting partial months in proration calculations. Use full calendar months. If you acquired the property after the first day of a month, start with the following month. If you disposed of it before the last day of a month, end with the preceding month.
- Not rounding proration calculations as directed. Round all decimals to four digits.
Questions people ask
What is alternative basis?
Alternative basis starts with the property's fair market value as of June 1, 1971, rather than its original cost or other original basis. Upward and downward adjustments include only the specified changes after May 31, 1971.
Which cost method code should I enter?
Use S for Listed Security, A for Appraisal, P for Proration, or X for Deemed. If you acquired the property before June 1, 1971, and it was listed on an established market or exchange on that date or during the preceding week, you must use the listed security method.
What if I cannot determine the property's June 1, 1971 value?
If you cannot determine it using the listed security, appraisal, or proration method, use the deemed value method. The value is the property's adjusted basis as of June 1, 1971, if determinable, or zero if it is not determinable.
Where do I enter the sale and acquisition dates?
In Column C, enter the month, day, and year sold above the dotted line. Enter the month, day, and year acquired below the dotted line.
What do I do with the total?
Subtotal Column F on Line 2. If the result is a gain, enter it on the appropriate line of the Pennsylvania income tax return you are filing. If the total is a loss, fill in the loss oval on Schedule D-71.