Pennsylvania PA Schedule D - Sale, Exchange or Disposition of Property
Extracted from PDF file 2019-pennsylvania-form-pa-40-d.pdf, last modified October 2011
PA Schedule D - Sale, Exchange or Disposition of Property1901310050 PA SCHEDULE D Sale, Exchange or Disposition of Property PA-40 D 05-19 (FI) PA Department of Revenue 2019 OFFICIAL USE ONLY If you need more space, you may photocopy. START Name of the taxpayer filing this schedule Social Security Number (shown first) ➜ Taxpayer Spouse Joint Important: A taxpayer and spouse must complete separate schedules to report their gains or losses or if any amounts are reported on Lines 3 through 10 of PA Schedule D. However, if all the gains and losses were realized on a joint basis, one schedule may be completed. Complete the oval to indicate whether the gains and losses included on the schedule are from the taxpayer, spouse or joint. One spouse may not use a loss to reduce the other spouse’s gains. When reporting the sale of jointly owned property that is not reported on a joint PA Schedule D, each must show their share of the sale on their separate PA Schedule D. Read the instructions. Enter all sales, exchanges or other dispositions of real or personal tangible and intangible property, including inherited property. Amounts from Federal Schedule D may not be correct for PA income tax purposes. Nonresidents should read carefully the instructions concerning intangible property. If the result is a loss, fill in the oval next to the line. (a) Describe the property: 100 shares of XYZ stock, or 10 acres in Dauphin County (b) Date acquired: Month/day/year MM/DD/YY (c) Date sold: Month/day/year MM/DD/YY (d) Gross sales price less expenses of sale (e) Cost or adjusted basis of the property sold (f) Gain or loss: (d) minus (e) (If a loss, fill in the oval). LOSS 1. LOSS LOSS LOSS LOSS LOSS LOSS LOSS LOSS LOSS LOSS LOSS LOSS LOSS LOSS LOSS LOSS LOSS LOSS LOSS 2. Net gain (loss) from above sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. Gain from installment sales from PA Schedule D-1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 3. 4. Taxable distributions from C corporations. . . . . . . . . . . .Enter total distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Minus adjusted basis 5. Net gain (loss) from the sale of 6-1-71 property from PA Schedule D-71. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. Net PA S corporation and partnership gain (loss) from your PA Schedule(s) RK-1 or NRK-1 . . . . . . . . . . . . . . . . . . . . 4. 5. 6. = LOSS LOSS Taxable gain from selling a principal residence. Complete and submit PA Schedule 19. Complete Columns (a) through (e) and enter your total gain on Line 7. (a) Address of residence MM/DD/YY ➜ (b) Date acquired: Month/day/year (c) Date sold: Month/day/year (d) Gross sales price less expenses of sale (e) Cost or adjusted basis of the property sold (f) Gain or loss: (d) minus (e) 7. Taxable gain from the sale of your principal residence. If you realized a loss on the sale of your principal residence, enter a zero. If you realized a gain/loss on the sale of the nonresidential portion of your principal residence, enter the information on Line 1 . . . . 7. 8. Taxable distributions from partnerships from REV-999. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8. 9. Taxable distributions from PA S corporations from REV-998. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9. 10. Taxable gain from exchange of insurance contracts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10. 11. Total PA Taxable Gain (Loss). Add Lines 2 through 10. Enter on Line 5 of your PA-40. (If a net loss, fill in the oval). . . 1901310050 Reset Entire Form TOP OF PAGE LOSS 11. 1901310050 NEXT PAGE PRINT Pennsylvania Department of Revenue 2019 Instructions for PA-40 Schedule D Sale, Exchange or Disposition of Property PA-40 D IN 05-19 GENERAL INFORMATION PA-40, Personal Income Tax Return). Enter the primary taxpayer’s name even if reporting the income for the spouse. PURPOSE OF SCHEDULE Use PA-40 Schedule D to report the amount of gain or loss from the sale, exchange or disposition of: ● Stocks; ● Bonds; ● Real estate; ● Business interests; ● Business property; ● Rental property; ● Property held by a pass-through entity; and ● Any other various types of investment or personal property. SOCIAL SECURITY NUMBER Enter the Social Security number (SSN) of the taxpayer. Enter the primary taxpayer’s SSN also when reporting gain or loss for the spouse. Refer to the PA Personal Income Tax Guide - Net Gains or Losses from the Sale, Exchange or Disposition of Property section for additional information. NOTE: A taxpayer and spouse must complete separate schedules to report their gains or losses or if any amounts are reported on Lines 3 through 10. RECORDING DOLLAR AMOUNTS JOINT OVAL Complete the joint oval if all the gains and losses reported by the taxpayer and spouse are being reported from jointly owned property. Show money amounts in whole-dollars only. Eliminate any amount less than $0.50 and increase any amount that is $0.50 or more to the next highest dollar. WHO MUST COMPLETE PA-40 Schedule D must be completed and included with an originally filed PA-40 if there are any transactions involving the sale, exchange or disposition of property. PA-40 Schedule D must be completed even if the only transaction is to report a loss. CAUTION: Do not use federal Schedule D to report gains and losses from the sale, exchange or disposition of property. An amended PA Schedule D must be included with Schedule PA-40 X if increases or decreases in income amounts on PA Schedule D are discovered after an original or other amended return is filed with the department. Section III on Page 2 of Schedule PA-40 X must be completed to explain any increase or decrease to the amount of gains or losses from the sale, exchange or disposition of property reported on an amended PA-40, Personal Income Tax Return. FORM INSTRUCTIONS IDENTIFICATION INFORMATION NAME Enter the name of the taxpayer. If a jointly filed return, enter the name of the primary taxpayer (name shown first on the www.revenue.pa.gov PREVIOUS PAGE TAXPAYER OVAL Complete the taxpayer oval to indicate the gain or loss reported is from the taxpayer whose name appears on the name line. SPOUSE OVAL Complete the spouse oval to indicate the gain or loss reported was earned by the spouse listed on a PA-40, Personal Income Tax Return, filed using the Married, Filing Jointly filing status. NOTE: Do not use the joint oval to report joint gains and losses if any gain or loss is reported by the taxpayer and/or spouse separately. In such cases, the joint gains or losses must be split and the taxpayer and spouse must show the separate share of the joint gain or loss on the separate PA-40 Schedule D prepared for each. IMPORTANT: One spouse may not use a loss to reduce the other spouse’s gains. Each spouse must show his/her share of the sale on their separate PA Schedule D. GENERAL INSTRUCTIONS REPORTING TRANSACTIONS Report all sales, exchanges, and dispositions of property using PA income tax rules, and PA income tax basis, in the year in which the transaction occurred. If a federal election allows a deferral to a different tax year or a deemed sale, the election may not be used for PA purposes. Summaries or groups of transactions as reported on brokerage statements or summaries of the sales of stocks, bonds and other financial instruments sold on the major financial exchanges on separately prepared statements may be used in lieu of entering each sale, exchange or disposition of property on PA Schedule D. All other transactions must be entered separately on PA Schedule D. If a brokerage or summary statement is used, a copy of the statement must be provided with the return. Electronically PA-40 D NEXT PAGE 1 filed returns will no longer permit entry of an unlimited number of transactions. Brokerage or summary statements of transactions will be required to be included as a PDF attachment with the return or faxed in to the department unless copies of the brokerage statements are already included with the federal e-filed return. Unless the specific instructions require a different Pennsylvania schedule or as previously noted above, report each sale, exchange, or disposition of property on PA Schedule D. OIL AND GAS PIPELINE OR WELL ACCESS EASEMENTS AND RIGHT OF WAYS Payments received for permanent right of ways and easements as well as express easements (15 years or longer in length) are considered a sale of a portion of the landowner’s property. The percentage of square footage of the land included in the permanent easement or right of way to the total square footage of the entire property (pro-rata method) multiplied by the total adjusted basis of the land (or any other reasonable method for determining basis of the property) should be used in determining the gain or loss on the property. If any method other than the pro-rata method is used, approval for use of the alternative method must be obtained from the Department of Revenue’s Office of Chief Counsel prior to filing the return. ● If the adjusted basis in Column (e) is greater than Column (d), enter zero in Column (f). A loss on the sale of personal property cannot be reported. IMPORTANT: Only losses from transactions entered into for profit may be deducted. Indicate a loss by filling in the oval. For taxpayers reporting the sales of exempt obligations, Include the issue or DTD date of the exempt obligation in the description of the items sold. The gain (loss) realized on the sale, exchange, or disposition of the following obligations must be reported if the original issue or DTD date was on or after Feb. 1, 1994: ● Direct obligations of the U.S. government, such as federal treasury bills and treasury notes; ● Obligations of certain agencies, instrumentalities, and territories of the U.S. government; and ● Direct obligations of the Commonwealth of Pennsylvania and its political subdivisions. CAUTION: Do not report the gain (loss) realized on the disposition of the above obligations if the original issue or DTD date was prior to Feb. 1, 1994, regardless of the date the obligation was acquired. Any loss realized on such dispositions may not be used to offset other gains. LINE INSTRUCTIONS NOTE: Gains or losses from exempt obligations of other states or political subdivisions not located in Pennsylvania must be reported regardless of the DTD date. LINE 1 LINE 2 COLUMN (a) List and describe the property sold or otherwise disposed of for cash or for other property. Total Column (f) and enter the net amount. Gains and losses for Line 2 may be offset if for the same taxpayer. COLUMN (b) Enter the month, day, and year acquired. If the properties were acquired over time or if entering a summary line for multiple transactions, VARIOUS may be entered. COLUMN (c) Enter the month, day, and year sold. If entering a summary line for multiple transactions, VARIOUS may be entered. COLUMN (d) Enter the gross sales price or fair market value of cash and property received less the applicable expenses of sale. COLUMN (e) Enter the cost or adjusted basis of the property sold. COLUMN (f) Determine whether the property was either I or II, and follow the appropriate instructions: I. If the property was income- producing property, such as stock, bonds, an ownership interest in a business, a rental property, a patent or copyright, or the property was held in connection with a business, profession, or occupation (but not inventory or an operational asset), then subtract Column (e) from Column (d). Enter either the gain or the loss or zero in Column (f). II. If the property was other than income-producing property (a personal automobile or furniture), then: ● If the adjusted basis in Column (e) is less than or equal to Column (d), enter the gain or zero in Column (f). 2 PA-40 D PREVIOUS PAGE If a loss, complete the loss oval and enter the amount as a negative number. LINE 3 Enter the taxable gain from each PA Schedule D-1, Form REV-1689, Computation of Installment Sale Income. CAUTION: The installment sales method may not be elected for: reporting gains from the sale of intangible personal property, such as stocks, bonds, partnership or other ownership interests; or reporting transactions where the object is the lending of money or the rendering of services. LINE 4 If a shareholder in a C corporation, the excess of the fair market value of a distribution (other than a dividend) in excess of current or accumulated earnings and profits over the adjusted basis of the stock must be reported as taxable gain. The basis of the stock or shares must be decreased, but not below zero, by any distribution that is not taxable as a dividend on Line 3 of the PA-40, Personal Income Tax Return. Example: B Corp distributes from its capital account $100,000 to Karen, the only stockholder. Her adjusted basis in her stock is $75,000. The distribution is not from the C corporation’s earnings and profits, so it is not a taxable dividend. Karen must reduce her basis from www.revenue.pa.gov NEXT PAGE $75,000 to zero. She reports $100,000 on the Enter total distribution line, and $75,000 on the Minus adjusted basis line. She reports the remaining $25,000 as a gain on Line 4 of her PA Schedule D. LINE 5 Enter the amount of gain (loss) on the sale of June 1, 1971 property from Form REV-1742, PA Schedule D-71. Include Form REV-1742 with the PA-40, Personal Income Tax Return. LINE 6 Enter the taxable gain or loss from Line 4 of PA Schedule(s) RK-1 or Line 2 PA Schedule(s) NRK-1. If PA Schedules RK1 or NRK-1 are not provided, enter the appropriate amounts of gain or loss from the federal Schedule(s) K-1. Include a statement providing the entity name and FEIN along with the gain or loss by entity if a gain or loss from any pass-through entity is reported on this line. LINE 7 PA law excludes the qualifying gain from the sale of a principal residence. Generally, if a home was owned and the property was used as a principal residence for at least two of the five years preceding the sale, the gain is exempt. However, a gain must be reported if the requirements for exempting the gain are not met. For more information refer to the Sale of Your Principal Residence brochure (REV-625). If not qualifying to exclude the gain from the sale of a principal residence, report the taxable gain, if any, on this line. If a loss was realized from the sale of a principal residence, enter a zero. If any portion of the principal residence was used for business or rental purposes, PA Schedule 19 must be completed and submitted with the PA-40, Personal Income Tax Return. Report the gain or loss on the business or rental portion of the sale of a principal residence on Line 1 of PA Schedule D. LINE 8 Enter the amount of any gain realized from other partnership distributions that exceed ownership basis in the partnership. www.revenue.pa.gov PREVIOUS PAGE REV-999, Partner PA Outside Tax Basis in a Partnership Worksheet must be completed and submitted with the PA40, Personal Income Tax Return. LINE 9 Enter the amount of any gain realized from other PA S corporation distributions that exceed ownership basis in the PA S corporation. REV-998, Shareholder Tax Basis in PA S Corporation Stock Worksheet must be completed and submitted with the PA-40, Personal Income Tax Return. LINE 10 If a sale, exchange, or disposition of an insurance contract does not qualify as tax-exempt under IRC Section 1035, report the taxable exchange of any insurance contracts reported for federal income tax purposes. If more than one taxable exchange of contracts, report the total gain realized. See the instructions beginning on Page 15 of the PA-40IN, Personal Income Tax Return Instructions Booklet, for a description of the tax-exempt exchanges covered under IRC Section 1035. LINE 11 Add the amounts included on Lines 2 through 10. Fill in the oval if the amount is negative. If the PA-40, Personal Income Tax Return, is being filed using the Married, Filing Jointly filing status, a taxpayer and spouse must use the following to determine what amount to report on Line 5 of the PA-40: I. If Line 11 for both the taxpayer and spouse separately prepared PA-40 Schedule Ds is a gain, add the amounts from Line 11 and include on Line 5 of the PA-40; II. If Line 11 for both the taxpayer and spouse separately prepared PA-40 Schedule Ds is a loss, add the amounts from Line 11 and include the amount on Line 5 of the PA-40; or III.If Line 11 for the taxpayer is a gain and Line 11 for the spouse is a loss (or vice versa), enter the amount of taxpayer’s (or spouse’s) gain on Line 5 of the PA-40. PA-40 D 3 RETURN TO FORM
2019 PA Schedule D - Sale, Exchange or Disposition of Property (PA-40 D)
More about the Pennsylvania Form PA-40 D Individual Income Tax TY 2019
We last updated the PA Schedule D - Sale, Exchange or Disposition of Property in January 2020, so this is the latest version of Form PA-40 D, fully updated for tax year 2019. You can download or print current or past-year PDFs of Form PA-40 D directly from TaxFormFinder. You can print other Pennsylvania tax forms here.
Related Pennsylvania Individual Income Tax Forms:
|Form Code||Form Name|
|Form PA-40||Pennsylvania Income Tax Return|
|Form PA-40 PA-V||PA-40 Payment Voucher|
|Form PA-40 W-2S||PA Schedule W-2S - Wage Statement Summary|
|PA-40||Income Tax Return|
|Form PA-40 A||PA Schedule A - Interest Income|
|Form PA-40 SP||PA Schedule SP - Special Tax Forgiveness|
|Form PA-40 B||PA Schedule B - Dividend Income|
|Form PA-40 UE||PA Schedule UE - Allowable Employee Business Expenses|
|Form PA-40 C||PA Schedule C - Profit or Loss From Business or Profession|
|Form PA-40 T||PA Schedule T - Gambling and Lottery Winnings|
Pennsylvania usually releases forms for the current tax year between January and April. We last updated Pennsylvania Form PA-40 D from the Department of Revenue in January 2020.
About the Individual Income Tax
The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.
Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!
Historical Past-Year Versions of Pennsylvania Form PA-40 D
We have a total of nine past-year versions of Form PA-40 D in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
2019 PA Schedule D - Sale, Exchange or Disposition of Property (PA-40 D)
2018 PA Schedule D - Sale, Exchange or Disposition of Property (PA-40 D)
2017 PA Schedule D - Sale, Exchange or Disposition of Property (PA-40 D)
2017 PA Schedule D - Sale, Exchange or Disposition of Property (PA-40 D)
2015 PA Schedule D - Sale, Exchange or Disposition of Property (PA-40 D)
2014 PA Schedule D - Sale, Exchange or Disposition of Property (PA-40 D)
2013 PA Schedule D - Sale, Exchange or Disposition of Property (PA-40 D)
2012 PA Schedule D - Sale, Exchange or Disposition of Property (PA-40 D)
2011 PA Schedule D - Sale, Exchange or Disposition of Property (PA-40 D)
While we do our best to keep our list of Pennsylvania Income Tax Forms up to date and complete, we cannot be held liable for errors or omissions. Is the form on this page out-of-date or not working? Please let us know and we will fix it ASAP.