How do I split sale of stock in PA

Forum|Forum|3 years ago
March 9, 2023
1 reply
18 views

I have a client who moved from DE to PA last September. They have sale of stock. In the PA return, it is displaying the total amount of the sale of stock instead of what is allocated to PA. I did split them in the PY Alloc Wks. I looked at PA Schedule D but can't find a place to make the adjustment. Does anyone know how to do this?

ProSeries Professional

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Best answer by mlthomas26

So I am using ProSeries Professional, so I don't see the files you indicated. Is there a filed like that in Professional that I am missing?

Sorry misspelled a word so wanted to clarify

So I am using ProSeries Professional, so I don't see the fields you indicated. Is there a field like that in Professional that I am missing?

itonewbie

Level 15

Why are you allocating it. Capital gains are sourced to the taxpayer's tax home. If the sale occurred during PA residency, it'd be fully taxable to PA only. Is there anything peculiar that you didn't tell us, which could affect the tax treatment?

---------------------------------------------------------------------------------Still an AllStar

M

mlthomas26Author

Level 3

They moved into PA in October of 2022 from DE. They sold stock while living both states. I can tell by the date which is PA income but the PA return is bringing in all the stock sold not just the stock sold while a PA resident. I am asking how do I get PA to only display PA stock sold.

Sorry if I was not clear in my original post.

itonewbie

Level 15

Got it!

If I understand you correctly, your client sold different lots during 2022. Part of these were sold during DE residency and the remainder after they moved to PA.

Assuming my understanding is correct, ProConnect Tax will determine the gain/loss that should flow from each sale to the respective state, not based not on the date of disposition (although you'd think it should know to use the residency periods you input for each state), but the 2-letter state abbreviation you select for the sourcing column for both of the following -

Sales price
Cost or other basis (do not reduce by depreciation)

It's relatively straightforward and painless.

Hope this helps.

---------------------------------------------------------------------------------Still an AllStar

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