Cap gain on sale of residence

Forum|Forum|4 years ago
February 12, 2022
1 reply
9 views

A client moved from CA to PA mid year. She sold her personal residence in CA while a PA resident. Does PA tax that gain?

Lacerte Tax

This topic has been closed for replies.

T

TaxGirl3

Level 5

I assume the gain exceeds the 250k/500k exclusion, if applicable? Taxable gain will be taxed by CA because it is CA property, regardless of residency. PA provides a resident tax credit for the amount of income sourced to, and taxed by, CA.

sjrcpa

Level 15

Does PA allow the $250/500K exclusion? I know they tax lots of things that the federal gov't doesn't.

The more I know the more I don’t know.

T

TaxGirl3

Level 5

Good point. In general, if eligibility requirements are met, PA doesn't tax gains on the sale of a principal residence. I had been thinking that only applies to in state residences, but it looks like they will simply fully exclude the gain on PA Schedule 19 regardless.

See https://www.revenue.pa.gov/FormsandPublications/PAPersonalIncomeTaxGuide/Documents/PITGuide_NetGainsSaleExchngDispProp.pdf

Of course, CA will still view it as CA sourced income.

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