Pennsylvania PA-41 Schedule D - Sale, Exchange or Dispostion of Property

PA-41 Schedule D - Sale, Exchange or Dispostion of Property
2023 PA-41 Schedule D - Sale, Exchange or Dispostion of Property (Form and Instructions) (PA-41 D)
IMPORTANT: FILL IN FORM MUST BE DOWNLOADED ONTO YOUR COMPUTER PRIOR TO COMPLETING

PA-41 SCHEDULE D

2304910058

Sale, Exchange or
Disposition of Property

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HERE

PA-41 D 03-23 (FI)
PA Department of Revenue

2023

OFFICIAL USE ONLY

Name as shown on PA-41

Federal EIN or Decedent’s SSN

➜
Read all instructions. Enter all sales, exchanges or other dispositions of real or personal tangible and intangible property. Amounts from federal Form
1041 Schedule D may not be correct for Pennsylvania purposes. If a loss, fill in the oval next to the line.
(a)
Describe the property sold (Example: 100 shares of “ABC”
common stock, or 2 acres in Dauphin County)
(b) and (c) example: MM/DD/YYYY

(b)
(c)
Month, day Month, day
and
and
year acquired year sold

(d)
Gross sales price
less expenses
of sale

(f)
Gain or Loss
(d) minus (e)

(e)
Cost or adjusted
basis
LOSS

1.

LOSS
LOSS
LOSS
LOSS
LOSS
LOSS
LOSS
LOSS
LOSS
LOSS
LOSS
LOSS
LOSS
LOSS
LOSS
LOSS
LOSS
LOSS
LOSS
LOSS
LOSS
LOSS
LOSS
LOSS

2. Net gain or loss from above sales. If a net loss, fill in the oval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.

3. Gain from PA Schedule(s) D-1, Installment Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.

4. Taxable distributions from C corporations . . . . . . . . . . Enter total distribution

$

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Minus adjusted basis

$

=

LOSS

5. Net gain or loss from PA Schedule D-71, Sale of 6-1-71 Property. If a loss, fill in the oval . . . . . . . . . . . . . . . . . . . . . . . .
6. Net partnership gain or loss from PA Schedules RK-1 or NRK-1. If a loss, fill in the oval . . . . . . . . . . . . . . . . . . . . . . . . .

LOSS
LOSS

4.
5.
6.

7. Net PA S corporation gain or loss from PA Schedules RK-1 or NRK-1. If a loss, fill in the oval . . . . . . . . . . . . . . . . . . . .

7.

8. Taxable distributions from partnerships from REV-999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8.

9. Taxable distributions from PA S corporations from REV-998 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10. Total net gain or loss. Add Lines 2 through 9. Enter the result here and on Line 4 of the PA-41.
If the estate or trust realized a net loss, please fill in the oval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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2023
Instructions for PA-41 Schedule D

Sale, Exchange or Disposition of Property

PA-41 D IN 03-23

GENERAL INFORMATION
PURPOSE OF SCHEDULE
Estates and trusts use PA-41 Schedule D to report the sale,
exchange or other dispositions of real or personal tangible
and intangible property.
Pennsylvania law does not recognize the deemed sale
election permitted by the Internal Revenue Service.
Report the sale, exchange or disposition of property on PA41 Schedule D, unless the instructions require a different
Pennsylvania schedule.

FORM INSTRUCTIONS

COLUMN (e) – COST OR ADJUSTED BASIS
Enter cost of adjusted basis of the property sold.
COLUMN (f) – GAIN OR LOSS (d) MINUS (e)
Determine whether the property was either 1 or 2, and follow
the appropriate instructions.
1. If the property is income-producing property acquired as
an investment, (such as capital stock, an interest in a
partnership or other business, a rental property, a patent
or copyright, etc.), or the estate or trust held the property
in connection with a business, profession or farm, and
the property is not inventory or an operational asset:
• Subtract Column (e) from Column (d) and enter the
gain, loss or zero in Column (f). If a loss, fill in the oval
next to the line;

NAME
Enter the complete name of the estate or trust as shown on
the PA-41, Fiduciary Income Tax Return.

2. If the property was other than income-producing
property:

FEIN OR DECEDENT’S SSN
Enter the nine-digit federal employer identification number
(FEIN) of the estate or trust or the decedent’s Social
Security number as shown on the PA-41, Fiduciary Income
Tax Return.

• If Column (e) is greater than Column (d), the estate or
trust does not realize a loss. Enter zero in Column (f).

An estate with a FEIN should not use the decedent’s
Social Security number.

LINE INSTRUCTIONS
LINE 1
COLUMN (a) – PROPERTY SOLD
List and describe the property sold or otherwise disposed of
for cash or other property.
COLUMN (b) – MONTH, DAY AND YEAR ACQUIRED
Enter the month, day and year the property was acquired. If
the estate or trust acquired properties over time or a
summary line is being entered for multiple transactions, the
estate or trust may enter VARIOUS.
COLUMN (c) – MONTH, DAY AND YEAR SOLD
Enter the month, day and year property was sold. If the
estate or trust is entering a summary line for multiple
transactions, the estate or trust may enter VARIOUS.
COLUMN (d) – GROSS SALES PRICE
LESS EXPENSE OF SALE
Enter the gross sales price or fair market value of cash
and/or property received, less applicable expenses of sale.
www.revenue.pa.gov
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• If Column (e) is less than or equal to Column (d) enter
the gain or zero in Column (f);

LINE 2
NET GAIN (LOSS) FROM ABOVE SALES
Add Column (f) and enter the total. Gains and losses may
be offset to calculate this line. If a loss, fill in the oval next to
the line.

LINE 3
GAIN FROM PA SCHEDULE D-1 INSTALLMENT SALES
The election to report using the installment method is made
by filing a PA Schedule D-1 (REV-1689) for the year of sale.
Schedule D-1 is required in subsequent years in which any
payment is received. Obtain and complete PA Schedule D1 and enter the amount from Line 19 of the schedule on Line
3 of the PA-41 Schedule D.

LINE 4
TAXABLE DISTRIBUTIONS FROM C CORPORATIONS
Enter total taxable distributions from C corporations.
TAXABLE DISTRIBUTIONS FROM A C CORPORATION
An estate or trust that is a shareholder in a C corporation
must report as taxable gain 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
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1

adjusted basis of its stock when the adjusted basis of the
stock is zero.

LINE 7

When a distribution, that is not a dividend, is received in
excess of the current or accumulated earnings and profits,
it decreases the basis of the stock or shares, but not below
zero, by any distribution that is not taxable as a dividend on
Line 2 of PA-41, Fiduciary Income Tax Return.

NET PA S CORPORATION GAIN (LOSS) FROM PA
SCHEDULES RK-1 OR NRK-1
Report the net gain (loss) from the sale, exchange or
disposition of property reported on PA-20S/PA-65 Schedule
RK-1, Line 4 or on PA-20S/PA-65 Schedule NRK-1, Line 2.
If a loss, fill in the oval next to the line.

Once a distribution reduces the basis of the stock to zero,
the excess distributions are taxable as gains from the
disposition of property and reported on Schedule D, Line 4.
Example B. B Corp distributes from its capital account
$100,000 to the estate of John Doe, the only stockholder.
The estate’s adjusted basis in the stock is $75,000.
The distribution is not from the regular corporation’s
earnings and profits, so it is not a taxable dividend.
The estate must reduce its basis from $75,000 to zero, then
report $100,000 on the "Enter total distribution" line, and
$75,000 on the "Minus adjusted basis" line.
The estate reports the remaining $25,000 as a gain on its
PA-41 Schedule D.

LINE 5
PROPERTY ACQUIRED BEFORE JUNE 1, 1971
If any property was acquired before June 1, 1971, use PA
Schedule D-71 (REV-1742), Gain or Loss on Property
Acquired Prior to June 1, 1971 to report the gain or loss. If
a loss, fill in the oval next to the line.

LINE 6
NET PARTNERSHIP GAIN (LOSS) FROM PA
SCHEDULES RK-1 OR NRK-1
Report the net gain (loss) from the sale, exchange or
disposition of property reported the PA-20S/PA-65 Schedule
RK-1, Line 4 or the PA Schedule NRK-1, Line 2. If a loss, fill
in the oval next to the line.
If the estate or trust realizes income from more than one
partnership, provide a statement showing the FEIN, name
and amount of income by the partnership.
Submit all PA-20S/PA-65 Schedules RK-1 or NRK-1 to
support the amount reported on PA-41 Schedule D Line 6.
Include a copy of federal Form 1065 Schedule K-1 if a PA20S/PA-65 Schedule RK-1 is not supplied by the partnership
or entity formed as a limited liability company classified as
a partnership for federal income tax purposes. If the estate
or trust receives only a federal Form 1065 Schedule K-1, the
income must be adjusted and classified from federal Form
1065 Schedule K-1 according to Pennsylvania rules. Refer
to the PA Personal Income Tax Guide - Pass Through
Entities section, for additional information on the
adjustments required and the proper classification of
income.
2

PA-41 D
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If the estate or trust realizes income from more than one PA
S corporation, provide a statement showing the FEIN, name
and amount of income by the PA S corporation.
Submit all PA-20S/PA-65 Schedules RK-1 or NRK-1 to
support the amount reported on PA-41 Schedule D Line 7.
Include a copy of federal Form 1120S Schedule K-1 if a PA20S/PA-65 Schedule RK-1 is not supplied by the PA S
corporation or entity formed as a limited liability company
classified as a PA S corporation for federal income tax
purposes. If the estate or trust receives only a federal Form
1120S Schedule K-1, the estate or trust must obtain a PA20S/ PA-65 Schedule RK-1 from the entity. The department
will only permit the estate or trust to adjust and reclassify
the income from federal Form 1120S Schedule K-1
according to Pennsylvania rules in limited circumstances.
Refer to the PA Personal Income Tax Guide - Pass Through
Entities section, for additional information on the
adjustments required and the proper classification of
income.

LINE 8
TAXABLE DISTRIBUTIONS FROM
PARTNERSHIPS FROM REV-999
Report any gain realized from other partnership distributions
that exceedthe estate or trust’s ownership basis in that
partnership.
Complete and submit REV-999, Partner’s Outside Tax Basis
in a Partnership Worksheet. The worksheet is available on
the department’s website.

LINE 9
TAXABLE DISTRIBUTIONS FROM PA S
CORPORATIONS FROM REV-998
Report any gain realized from other PA S corporation
distributions that exceed the estate or trust’s ownership
basis in that PA S corporation.
Complete and submit REV-998, Shareholder Tax Basis in
PA S Corporation Stock Worksheet. The worksheet, is
available on the department’s website.

LINE 10
TOTAL NET GAIN (LOSS)
Add Lines 2 through 9. Include the net gain (loss) on the PA41, Fiduciary Income Tax Return, Line 4. If a loss, fill in the
oval next to the line.
www.revenue.pa.gov
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