Form PA-40 Schedule D "Sale, Exchange or Disposition of Property" - Pennsylvania

What Is Form PA-40 Schedule D?

This is a legal form that was released by the Pennsylvania Department of Revenue - a government authority operating within Pennsylvania.The document is a supplement to Form PA-40, Pennsylvania Income Tax Return. As of today, no separate filing guidelines for the form are provided by the issuing department.

Form Details:

  • Released on May 1, 2019;
  • The latest edition provided by the Pennsylvania Department of Revenue;
  • Easy to use and ready to print;
  • Quick to customize;
  • Compatible with most PDF-viewing applications;
  • Fill out the form in our online filing application.

Download a fillable version of Form PA-40 Schedule D by clicking the link below or browse more documents and templates provided by the Pennsylvania Department of Revenue.

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Download Form PA-40 Schedule D "Sale, Exchange or Disposition of Property" - Pennsylvania

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1901310050
PA SCHEDULE D
Sale, Exchange or Disposition of Property
2019
PA-40 D 05-19 (FI)
PA Department of Revenue
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)
(b)
(c)
(e)
(f)
(d)
Describe the property:
Date acquired:
Date sold:
Gross sales price
Cost or adjusted
Gain or loss:
Month/day/year
100 shares of XYZ stock, or
Month/day/year
less expenses
basis of the
(d) minus (e)
MM/DD/YY
MM/DD/YY
10 acres in Dauphin County
property sold
(If a loss, fill in the oval).
of sale
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.
3. Gain from installment sales from PA Schedule D-1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.
4. Taxable distributions from C corporations. . . . . . . . . . . .Enter total distribution
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Minus adjusted basis
=
4.
LOSS
5. Net gain (loss) from the sale of 6-1-71 property from PA Schedule D-71. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.
6. Net PA S corporation and partnership gain (loss) from your PA Schedule(s) RK-1 or NRK-1 . . . . . . . . . . . . . . . . . . . .
LOSS
6.
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)
(b)
(c)
(d)
(e)
(f)
MM/DD/YY
Address of
Date acquired:
Date sold:
Gross sales price
Cost or adjusted basis of
Gain or loss:
residence
Month/day/year
Month/day/year
less expenses of sale
the property sold
(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.
LOSS
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). . .
11.
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1901310050
PA SCHEDULE D
Sale, Exchange or Disposition of Property
2019
PA-40 D 05-19 (FI)
PA Department of Revenue
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)
(b)
(c)
(e)
(f)
(d)
Describe the property:
Date acquired:
Date sold:
Gross sales price
Cost or adjusted
Gain or loss:
Month/day/year
100 shares of XYZ stock, or
Month/day/year
less expenses
basis of the
(d) minus (e)
MM/DD/YY
MM/DD/YY
10 acres in Dauphin County
property sold
(If a loss, fill in the oval).
of sale
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.
3. Gain from installment sales from PA Schedule D-1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.
4. Taxable distributions from C corporations. . . . . . . . . . . .Enter total distribution
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Minus adjusted basis
=
4.
LOSS
5. Net gain (loss) from the sale of 6-1-71 property from PA Schedule D-71. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.
6. Net PA S corporation and partnership gain (loss) from your PA Schedule(s) RK-1 or NRK-1 . . . . . . . . . . . . . . . . . . . .
LOSS
6.
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)
(b)
(c)
(d)
(e)
(f)
MM/DD/YY
Address of
Date acquired:
Date sold:
Gross sales price
Cost or adjusted basis of
Gain or loss:
residence
Month/day/year
Month/day/year
less expenses of sale
the property sold
(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.
LOSS
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). . .
11.
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2019
Pennsylvania Department of Revenue
Instructions for PA-40 Schedule D
Sale, Exchange or Disposition of Property
PA-40 D IN 05-19
PA-40, Personal Income Tax Return). Enter the primary tax-
GENERAL INFORMATION
payer’s name even if reporting the income for the spouse.
PURPOSE OF SCHEDULE
SOCIAL SECURITY NUMBER
Use PA-40 Schedule D to report the amount of gain or loss
Enter the Social Security number (SSN) of the taxpayer.
from the sale, exchange or disposition of:
Enter the primary taxpayer’s SSN also when reporting gain
● Stocks;
or loss for the spouse.
● Bonds;
TAXPAYER OVAL
● Real estate;
Complete the taxpayer oval to indicate the gain or loss re-
ported is from the taxpayer whose name appears on the
● Business interests;
name line.
● Business property;
SPOUSE OVAL
● Rental property;
Complete the spouse oval to indicate the gain or loss re-
● Property held by a pass-through entity; and
ported was earned by the spouse listed on a PA-40, Per-
● Any other various types of investment or personal
sonal Income Tax Return, filed using the Married, Filing
property.
Jointly filing status.
Refer to the PA Personal Income Tax Guide - Net Gains or
NOTE: A taxpayer and spouse must complete sepa-
Losses from the Sale, Exchange or Disposition of Property
rate schedules to report their gains or losses or if any
section for additional information.
amounts are reported on Lines 3 through 10.
JOINT OVAL
RECORDING DOLLAR AMOUNTS
Complete the joint oval if all the gains and losses reported
Show money amounts in whole-dollars only. Eliminate any
by the taxpayer and spouse are being reported from jointly
amount less than $0.50 and increase any amount that is
owned property.
$0.50 or more to the next highest dollar.
NOTE: Do not use the joint oval to report joint gains
and losses if any gain or loss is reported by the tax-
WHO MUST COMPLETE
payer and/or spouse separately. In such cases, the joint
gains or losses must be split and the taxpayer and spouse
PA-40 Schedule D must be completed and included with an
must show the separate share of the joint gain or loss on
originally filed PA-40 if there are any transactions involving
the separate PA-40 Schedule D prepared for each.
the sale, exchange or disposition of property. PA-40 Sched-
ule D must be completed even if the only transaction is to
IMPORTANT: One spouse may not use a loss to re-
report a loss.
duce the other spouse’s gains. Each spouse must show
his/her share of the sale on their separate PA Schedule D.
CAUTION: Do not use federal Schedule D to report
gains and losses from the sale, exchange or dispo-
GENERAL INSTRUCTIONS
sition of property.
An amended PA Schedule D must be included with
REPORTING TRANSACTIONS
Schedule PA-40 X if increases or decreases in income
Report all sales, exchanges, and dispositions of property
amounts on PA Schedule D are discovered after an original
using PA income tax rules, and PA income tax basis, in
or other amended return is filed with the department. Section
the year in which the transaction occurred. If a federal elec-
III on Page 2 of Schedule PA-40 X must be completed to ex-
tion allows a deferral to a different tax year or a deemed
plain any increase or decrease to the amount of gains or
sale, the election may not be used for PA purposes.
losses from the sale, exchange or disposition of property
Summaries or groups of transactions as reported on broker-
reported on an amended PA-40, Personal Income Tax Re-
age statements or summaries of the sales of stocks, bonds
turn.
and other financial instruments sold on the major financial
exchanges on separately prepared statements may be used
FORM INSTRUCTIONS
in lieu of entering each sale, exchange or disposition of
property on PA Schedule D. All other transactions must be
IDENTIFICATION INFORMATION
entered separately on PA Schedule D.
NAME
Enter the name of the taxpayer. If a jointly filed return, enter
If a brokerage or summary statement is used, a copy of the
the name of the primary taxpayer (name shown first on the
statement must be provided with the return. Electronically
www.revenue.pa.gov
PA-40 D
1
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filed returns will no longer permit entry of an unlimited num-
● If the adjusted basis in Column (e) is greater than
ber of transactions. Brokerage or summary statements of
Column (d), enter zero in Column (f). A loss on the
sale of personal property cannot be reported.
transactions will be required to be included as a PDF at-
tachment with the return or faxed in to the department un-
IMPORTANT: Only losses from transactions entered
less copies of the brokerage statements are already
into for profit may be deducted. Indicate a loss by fill-
included with the federal e-filed return.
ing in the oval.
Unless the specific instructions require a different Pennsyl-
For taxpayers reporting the sales of exempt obliga-
vania schedule or as previously noted above, report each
tions, Include the issue or DTD date of the exempt ob-
sale, exchange, or disposition of property on PA Schedule
ligation in the description of the items sold. The gain (loss)
D.
realized on the sale, exchange, or disposition of the follow-
ing obligations must be reported if the original issue or DTD
OIL AND GAS PIPELINE OR WELL ACCESS
date was on or after Feb. 1, 1994:
EASEMENTS AND RIGHT OF WAYS
Payments received for permanent right of ways and ease-
● Direct obligations of the U.S. government, such as fed-
ments as well as express easements (15 years or longer in
eral treasury bills and treasury notes;
length) are considered a sale of a portion of the landowner’s
● Obligations of certain agencies, instrumentalities, and
property. The percentage of square footage of the land in-
territories of the U.S. government; and
cluded in the permanent easement or right of way to the total
● Direct obligations of the Commonwealth of Pennsylva-
square footage of the entire property (pro-rata method) mul-
nia and its political subdivisions.
tiplied by the total adjusted basis of the land (or any other
reasonable method for determining basis of the property)
CAUTION: Do not report the gain (loss) realized on the
should be used in determining the gain or loss on the prop-
disposition of the above obligations if the original issue
erty. If any method other than the pro-rata method is used,
or DTD date was prior to Feb. 1, 1994, regardless of the
approval for use of the alternative method must be obtained
date the obligation was acquired. Any loss realized on such
from the Department of Revenue’s Office of Chief Counsel
dispositions may not be used to offset other gains.
prior to filing the return.
NOTE: Gains or losses from exempt obligations of
other states or political subdivisions not located in
LINE INSTRUCTIONS
Pennsylvania must be reported regardless of the DTD date.
LINE 1
LINE 2
COLUMN (a)
Total Column (f) and enter the net amount. Gains and losses
List and describe the property sold or otherwise disposed of
for Line 2 may be offset if for the same taxpayer.
for cash or for other property.
If a loss, complete the loss oval and enter the amount as a
COLUMN (b)
negative number.
Enter the month, day, and year acquired. If the prop-
erties were acquired over time or if entering a summary
LINE 3
line for multiple transactions, VARIOUS may be entered.
Enter the taxable gain from each PA Schedule D-1, Form
COLUMN (c)
REV-1689, Computation of Installment Sale Income.
Enter the month, day, and year sold. If entering a summary
line for multiple transactions, VARIOUS may be entered.
CAUTION: The installment sales method may not be
elected for: reporting gains from the sale of intan-
COLUMN (d)
gible personal property, such as stocks, bonds, partnership
Enter the gross sales price or fair market value of cash and
or other ownership interests; or reporting transactions where
property received less the applicable expenses of sale.
the object is the lending of money or the rendering of serv-
ices.
COLUMN (e)
Enter the cost or adjusted basis of the property sold.
LINE 4
COLUMN (f)
Determine whether the property was either I or II, and follow
If a shareholder in a C corporation, the excess of the fair
the appropriate instructions:
market value of a distribution (other than a dividend) in ex-
I. If the property was income- producing property, such
cess of current or accumulated earnings and profits over the
as stock, bonds, an ownership interest in a business, a
adjusted basis of the stock must be reported as taxable
rental property, a patent or copyright, or the property was
gain. The basis of the stock or shares must be decreased,
held in connection with a business, profession, or occu-
but not below zero, by any distribution that is not taxable as a
pation (but not inventory or an operational asset), then
dividend on Line 3 of the PA-40, Personal Income Tax Re-
subtract Column (e) from Column (d). Enter either the
turn.
gain or the loss or zero in Column (f).
Example: B Corp distributes from its capital account
II. If the property was other than income-producing
$100,000 to Karen, the only stockholder. Her adjusted
property (a personal automobile or furniture), then:
basis in her stock is $75,000. The distribution is not from
the C corporation’s earnings and profits, so it is not a
● If the adjusted basis in Column (e) is less than or equal
to Column (d), enter the gain or zero in Column (f).
taxable dividend. Karen must reduce her basis from
2
PA-40 D
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$75,000 to zero. She reports $100,000 on the Enter total
REV-999, Partner PA Outside Tax Basis in a Partnership
distribution line, and $75,000 on the Minus adjusted
Worksheet must be completed and submitted with the PA-
basis line. She reports the remaining $25,000 as a gain
40, Personal Income Tax Return.
on Line 4 of her PA Schedule D.
LINE 9
LINE 5
Enter the amount of any gain realized from other PA S cor-
Enter the amount of gain (loss) on the sale of June 1, 1971
poration distributions that exceed ownership basis in the PA
property from Form REV-1742, PA Schedule D-71. Include
S corporation. REV-998, Shareholder Tax Basis in PA S Cor-
Form REV-1742 with the PA-40, Personal Income Tax Re-
poration Stock Worksheet must be completed and submitted
turn.
with the PA-40, Personal Income Tax Return.
LINE 6
LINE 10
Enter the taxable gain or loss from Line 4 of PA Schedule(s)
If a sale, exchange, or disposition of an insurance contract
RK-1 or Line 2 PA Schedule(s) NRK-1. If PA Schedules RK-
does not qualify as tax-exempt under IRC Section 1035, re-
1 or NRK-1 are not provided, enter the appropriate amounts
port the taxable exchange of any insurance contracts re-
of gain or loss from the federal Schedule(s) K-1. Include a
ported for federal income tax purposes. If more than one
statement providing the entity name and FEIN along with the
taxable exchange of contracts, report the total gain realized.
gain or loss by entity if a gain or loss from any pass-through
See the instructions beginning on Page 15 of the PA-40IN,
entity is reported on this line.
Personal Income Tax Return Instructions Booklet, for a
LINE 7
description of the tax-exempt exchanges covered under IRC
Section 1035.
PA law excludes the qualifying gain from the sale of a prin-
cipal residence. Generally, if a home was owned and the
LINE 11
property was used as a principal residence for at least two
of the five years preceding the sale, the gain is exempt. How-
Add the amounts included on Lines 2 through 10. Fill in the
ever, a gain must be reported if the requirements for exempt-
oval if the amount is negative. If the PA-40, Personal In-
ing the gain are not met. For more information refer to the
come Tax Return, is being filed using the Married, Filing
Sale of Your Principal Residence brochure (REV-625). If
Jointly filing status, a taxpayer and spouse must use the fol-
not qualifying to exclude the gain from the sale of a principal
lowing to determine what amount to report on Line 5 of the
residence, report the taxable gain, if any, on this line. If a
PA-40:
loss was realized from the sale of a principal residence,
I. If Line 11 for both the taxpayer and spouse separately
enter a zero. If any portion of the principal residence was
prepared PA-40 Schedule Ds is a gain, add the amounts
used for business or rental purposes, PA Schedule 19 must
from Line 11 and include on Line 5 of the PA-40;
be completed and submitted with the PA-40, Personal In-
come Tax Return. Report the gain or loss on the business
II. If Line 11 for both the taxpayer and spouse separately
or rental portion of the sale of a principal residence on Line
prepared PA-40 Schedule Ds is a loss, add the amounts
1 of PA Schedule D.
from Line 11 and include the amount on Line 5 of the
PA-40; or
LINE 8
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 tax-
Enter the amount of any gain realized from other partnership
distributions that exceed ownership basis in the partnership.
payer’s (or spouse’s) gain on Line 5 of the PA-40.
www.revenue.pa.gov
PA-40 D
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