Pennsylvania PA Schedule D - Sale, Exchange or Disposition of Property Within Pennsylvania

PA Schedule D - Sale, Exchange or Disposition of Property Within Pennsylvania
2023 PA Schedule D - Sale, Exchange or Disposition of Property Within Pennsylvania (PA-20S/PA-65 D)
IMPORTANT: FILL IN FORM MUST BE DOWNLOADED ONTO YOUR COMPUTER PRIOR TO COMPLETING
2306410057

PA SCHEDULE D-I

Sale, Exchange or Disposition of Property
Within Pennsylvania
PA-20S/PA-65 D (DR) MOD 04-23 (FI)
PA Department of Revenue

START

2023

OFFICIAL USE ONLY

FEIN 9 DIGIT - NO DASH

Name as shown on the PA-20S/PA-65 Information Return

C

➜

Part I.

Allocated gain (loss) from the Sale, Exchange or Disposition of Property within Pennsylvania. Enter whole dollars only.
Amended Schedule

If Part I is blank, fill in the oval

Federal Realized and Recognized Gains (Losses):
(If a loss,
fill in oval)
1 All PA-source gain (loss) included in federal ordinary business income (loss)
LOSS
1
and/or federal other income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 All PA-source gain (loss) included in ordinary net rental/royalty income (loss)
from federal Form 8825 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 All PA-source net short-term capital gain (loss) from federal Schedule D . . . . . . . . . . . . . . .
4 All PA-source net long-term capital gain (loss) from federal Schedule D . . . . . . . . . . . . . . . .
5 All other PA-source net IRC Section 1231 gain (loss) reported on federal Form 4797
not listed above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6 All PA-source gain (loss) from the disposition of IRC Section 179 property . . . . . . . . . . . . . .

LOSS

LOSS

LOSS

LOSS

LOSS

2
3
4
5
6

7 Capital gain distributions taxed as dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

8 Total PA-source federal realized and recognized reportable gain (loss) before classification
and/or adjustments for PA PIT purposes. Add Lines 1 through 6, minus Line 7 . . . . . . . . . . . . . . . . .

8

9 PA-source adjustment for gain (loss) reflected on Part I of Schedule M for business income
(loss) (net profits from a business, profession, or farm) . . . . . . . . . . . . . . . . . . . . . . . . . . .
10 PA-source PIT reportable Schedule D gain (loss) before PA PIT adjustments
(Line 8 minus Line 9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11 Net or aggregate PA-source PIT adjustments for Schedule D gain (loss) from transactions
requiring adjustment for PA/federal gain (loss) differences. Itemize on Schedule D-II . . . . . . . .
12 Net adjustment to arrive at PA-source PIT Schedule D reportable gain (loss).
Add Lines 10 and 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13 PA-source partnership and PA S corp gain (loss) from PA Schedules RK-1 and NRK-1 . . . . . .
14 Total PA-source Schedule D net gain (loss) from property within PA for residents only.
Add Lines 12 and 13. Enter this number on Page 1, Section III, Line 5b of the PA-20S/PA-65 . . . .
15 PA-source adjustment for gain (loss) on sale of short-term portfolio investments
not used in working capital for nonresidents only . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16 Total PA-source Schedule D net gain (loss) from property within PA for nonresidents
only. (Line 14 minus Line 15). This line should be allocated to the NRK-1s based on
percentage interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

LOSS

LOSS

LOSS

LOSS

LOSS

LOSS

If a loss, enter "0"

9
10
11
12
13

LOSS

14

LOSS

15

LOSS

DOLLARS ONLY. NO CENTS.

16

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PA SCHEDULE D-II

Sale, Exchange or Disposition of Property
Within Pennsylvania
PA-20S/PA-65 D (DR) MOD 04-23 (FI)
PA Department of Revenue

START

2306510054

2023

OFFICIAL USE ONLY

Name as shown on the PA-20S/PA-65 Information Return

FEIN 9 DIGIT - NO DASH

➜

C

Part II.

Sale, Exchange or Disposition of Property within Pennsylvania. If any of the federal gain (loss) transactions require adjustment, list each
transaction and show the differences in federal gain (loss). The difference in PA/federal gain (loss) equals PA gain (loss) minus federal gain (loss). If the difference is
negative, fill in the loss oval. Copy PA-20S/PA-65 Schedule D-II to list additional properties. Enter whole dollars only.
Type of Property: R=Real P=Personal S=Security O=Other Intangible (not security)
Amended Schedule
1 Type of Property

If Part II is blank, fill in the oval

Description of Property:

Date acquired (MMDDYYYY)
MM/DD/YYYY

Cost or other PA basis

PA allowed or allowable depreciation

If a loss, enter "0"

If a loss, enter "0"
Date sold

(MMDDYYYY)
MM/DD/YYYY

Gross sales price DOLLARS ONLY. NO CENTS.

If a loss, enter "0"
2 Type of Property

Difference in PA/Fed Gain (Loss)
LOSS

Description of Property:

Date acquired (MMDDYYYY)
MM/DD/YYYY

PA allowed or allowable depreciation

Cost or other PA basis

If a loss, enter "0"

If a loss, enter "0"
Date sold

(MMDDYYYY)
MM/DD/YYYY

Gross sales price DOLLARS ONLY. NO CENTS.

If a loss, enter "0"
3 Type of Property

Difference in PA/Fed Gain (Loss)
LOSS

Description of Property:

Date acquired (MMDDYYYY)
MM/DD/YYYY

PA allowed or allowable depreciation

Cost or other PA basis

If a loss, enter "0"

If a loss, enter "0"
Date sold

(MMDDYYYY)
MM/DD/YYYY

Gross sales price DOLLARS ONLY. NO CENTS.

If a loss, enter "0"
4 Type of Property

Difference in PA/Fed Gain (Loss)
LOSS

Description of Property:

MM/DD/YYYY
Date acquired (MMDDYYYY)

PA allowed or allowable depreciation

Cost or other PA basis

If a loss, enter "0"
Date sold

(MMDDYYYY)
MM/DD/YYYY

Gross sales price DOLLARS ONLY. NO CENTS.

If a loss, enter "0"
5 Type of Property

If a loss, enter "0"
Difference in PA/Fed Gain (Loss)
LOSS

Description of Property:

Date acquired (MMDDYYYY)
MM/DD/YYYY

PA allowed or allowable depreciation

Cost or other PA basis

If a loss, enter "0"
Date sold

(MMDDYYYY)
MM/DD/YYYY

If a loss, enter "0"

Gross sales price DOLLARS ONLY. NO CENTS.

If a loss, enter "0"

Difference in PA/Fed Gain (Loss)
LOSS

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PA SCHEDULE D-III

Sale, Exchange or Disposition of Property
Outside Pennsylvania
PA-20S/PA-65 D (DR) MOD 04-23 (FI)
PA Department of Revenue

START

2306610052

2023

OFFICIAL USE ONLY

Name as shown on the PA-20S/PA-65 Information Return

FEIN 9 DIGIT - NO DASH

C

➜

Part III. Allocated gain (loss) from the Sale, Exchange or Disposition of Property outside Pennsylvania.
Amended Schedule

Enter whole dollars only.

If Part III is blank, fill in the oval

(If a loss,
Federal Realized and Recognized Gains (Losses):
fill in oval)
1 All outside PA gain (loss) included in federal ordinary business income (loss)
LOSS
and/or federal other income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1

2 All outside PA gain (loss) included in ordinary net rental/royalty income (loss)
from federal Form 8825 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 All outside PA net short-term capital gain (loss) from federal Schedule D . . . . . . . . . . . . . . .
4 All outside PA net long-term capital gain (loss) from federal Schedule D . . . . . . . . . . . . . . . .
5 All other outside PA net IRC Section 1231 gain (loss) reported on federal Form 4797
not listed above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6 All outside PA gain (loss) from the disposition of IRC Section 179 property . . . . . . . . . . . . . .

LOSS

LOSS

LOSS

LOSS

LOSS

7 Capital gain distributions taxed as dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8 Total federal realized and recognized outside PA-source reportable gain (loss) before
classification and/or adjustments for PA PIT purposes. Add Lines 1 through 6,
minus Line 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9 Outside PA adjustment for gain (loss) reflected on Part I of Schedule M for business income
(loss) (net profits from a business, profession, or farm) . . . . . . . . . . . . . . . . . . . . . . . . . . .
10 Outside PA PIT reportable Schedule D gain (loss) before PA PIT adjustments
(Line 8 minus Line 9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3
4
5
6
7

If a loss, enter "0"

8
LOSS

LOSS

LOSS

12 Net adjustment to arrive at outside PA PIT Schedule D reportable gain (loss).
Add Lines 10 and 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

LOSS

14 Total outside PA Schedule D net gain (loss) from property outside PA. Add Lines 12
and 13. Enter this number on Page 1, Section III, Line 5a of the PA-20S/PA-65
Information Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

LOSS

11 Net or aggregate outside PA PIT adjustments for Schedule D gain (loss) from transactions
requiring adjustment for PA/federal gain (loss) differences. Itemize on Schedule D-IV . . . . . . .

13 Outside partnership and PA S corp gain (loss) from PA Schedules RK-1 and NRK-1 . . . . . . . .

DOLLARS ONLY. NO CENTS.

LOSS

9
10
11
12
13

LOSS

14

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PA SCHEDULE D-IV

Sale, Exchange or Disposition of Property
Outside Pennsylvania
PA-20S/PA-65 D (DR) MOD 04-23 (FI)
PA Department of Revenue

START

2306710050

2023

OFFICIAL USE ONLY

Name as shown on the PA-20S/PA-65 Information Return

FEIN 9 DIGIT - NO DASH

➜

C

Part IV.

Sale, Exchange or Disposition of Property outside Pennsylvania. If any of the federal gain (loss) transactions require adjustment, list
each transaction and show the differences in federal gain (loss). The difference in PA/federal gain (loss) equals PA gain (loss) minus federal gain (loss). If the difference is
negative, fill in the loss oval. Copy PA-20S/PA-65 Schedule D-IV to list additional properties. Enter whole dollars only.
Type of Property: R=Real P=Personal S=Security O=Other Intangible (not security)
1 Type of Property

Amended Schedule
Description of Property:

Date acquired (MMDDYYYY)
MM/DD/YYYY

If Part IV is blank, fill in the oval

PA allowed or allowable depreciation

Cost or other PA basis

If a loss, enter "0"
Date sold

MM/DD/YYYY
(MMDDYYYY)

Gross sales price DOLLARS ONLY. NO CENTS.

If a loss, enter "0"
2 Type of Property

If a loss, enter "0"
Difference in PA/Fed Gain (Loss)
LOSS

Description of Property:

Date acquired (MMDDYYYY)
MM/DD/YYYY

PA allowed or allowable depreciation

Cost or other PA basis

If a loss, enter "0"
Date sold

(MMDDYYYY)
MM/DD/YYYY

Gross sales price DOLLARS ONLY. NO CENTS.

If a loss, enter "0"
3 Type of Property

If a loss, enter "0"
Difference in PA/Fed Gain (Loss)
LOSS

Description of Property:

Date acquired (MMDDYYYY)
MM/DD/YYYY

PA allowed or allowable depreciation

Cost or other PA basis

If a loss, enter "0"
Date sold

(MMDDYYYY)
MM/DD/YYYY

Gross sales price DOLLARS ONLY. NO CENTS.

If a loss, enter "0"
4 Type of Property

If a loss, enter "0"
Difference in PA/Fed Gain (Loss)
LOSS

Description of Property:

Date acquired (MMDDYYYY)
MM/DD/YYYY

PA allowed or allowable depreciation

Cost or other PA basis

If a loss, enter "0"
Date sold

(MMDDYYYY)
MM/DD/YYYY

Gross sales price DOLLARS ONLY. NO CENTS.

If a loss, enter "0"
5 Type of Property

If a loss, enter "0"
Difference in PA/Fed Gain (Loss)
LOSS

Description of Property:

Date acquired (MMDDYYYY)
MM/DD/YYYY

PA allowed or allowable depreciation

Cost or other PA basis

If a loss, enter "0"
Date sold

(MMDDYYYY)
MM/DD/YYYY

If a loss, enter "0"

Gross sales price DOLLARS ONLY. NO CENTS.

Difference in PA/Fed Gain (Loss)
LOSS

If a loss, enter "0"

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2023
Instructions for PA-20S/PA-65 Schedule D
PA-20S/PA-65 D IN (DR) 04-23

WHAT’S NEW
Effective for transactions on or after January 1, 2023 Pennsylvania conforms to the federal tax treatment of deferring
gains (loss) on like-kind exchanges under IRC §1031.

GENERAL INFORMATION
PURPOSE OF SCHEDULE
PA S corporations, partnerships or limited liability companies
classified as partnerships or PA S corporations for federal
income tax purposes use PA-20S/PA-65 Schedule D to
report the allocated gain (loss) from the sale, exchange or
disposition of property within and outside of Pennsylvania.

Sale, Exchange or Disposition of Property

companies as dividend income on the partner’s/shareholder’s (owner’s) personal income tax return.
● Adjusted Basis - The entity determines the basis of real,
personal, tangible and intangible property it acquired on
or after June 1, 1971, on the date of acquisition.
The entity must adjust the basis of property it acquired
before June 1, 1971, to reflect the property’s value on
that date. For determining a gain, the basis of such
property is the greater of (1) the property’s cost or other
basis, as adjusted, or (2) the property’s fair market value
on June 1, 1971. For determining a loss, the basis of
such property is the cost or other basis, as adjusted,
without reference to its fair market value on June 1,
1971. For instructions on how to determine the basis
of assets acquired on or before June 1, 1971, obtain
REV-1742, Gain or Loss on Property Acquired Prior to
June 1, 1971, PA Schedule D-71.

NET GAIN (LOSS) FROM THE SALE, EXCHANGE OR
DISPOSITION OF PROPERTY
Entities must report the sale, exchange or disposition of
capital assets and gains on the distribution of appreciated
assets to its partners, members and shareholders (owners).
The entity must report the gain on the sale, exchange or disposition of property to its owners in the year in which the
amount realized from the conversion of the property into
cash or other property exceeds the adjusted basis of the
property. A loss is recognized only on transactions the PA S
corporation or partnership entered into for profit and only in
the taxable year in which the transaction, in respect to which
loss is claimed, is closed and completed by an identifiable
event that fixes the amount of the loss so there is no possibility of eventual recoupment.

NOTE: You classify gains and losses as net profits for
Pennsylvania if you reinvest the funds in the same line
of business within the same entity. You reinvest funds in the
same line of business within the same entity only if you use
the funds to acquire like-kind property used in the same business, profession, or farm. “Like-kind property” refers to the
nature, character and/or class of property, not its condition
or quality. “Line of business” is defined by the North American
Industry Classification System (NAICS) code. If you do not
reinvest the funds in the same line of business, then you
must report the gains and losses on PA Schedule D.

IMPORTANT: Include the sales, exchanges or dispositions of inventories and/or stock-in-trade in determining net business income (loss).

Refer to the PA Personal Income Tax Guide for specific rules
related to Net Gains or Losses From the Sale, Exchange or
Disposition of Property.

Use this schedule to report net gain (loss) derived from the
sale, exchange or disposition of property, including real
property, tangible personal property, intangible personal
property or obligations issued on or after the effective date
of this amendatory act by the commonwealth; any public
authority, commission, board or other agency created by the
commonwealth; any political subdivision of the commonwealth or any public authority created by any such political
subdivision; or by the federal government as determined
in accordance with accepted accounting principles and
practices.

The determination of whether gains are classified as
incurred in the ordinary course of operations of the business,
profession or qualified activity are not determined based on
the character of the federal income. As an example, ordinary
income recapture is not automatically classified as incurred
in the ordinary course of operations of the business, profession or qualified activity.

Amounts from federal Schedule D and other federal
forms may not be accurate for Pennsylvania personal
income tax purposes.
Other issues that the PA S corporation or partnership must
consider:
● Pennsylvania law recognizes capital gain distributions
from mutual funds and other regulated investment

Likewise, as to the long-term and short-term federal classification as Schedule D gain:
● Aggregate federal gain (loss) from operations other than
real estate is first aggregated and then classified for
Pennsylvania personal income tax purposes as either
Schedule D gain (loss) or net profit (loss).
● All aggregate federal gain (loss) that is not classified as
net profits and reported on PA-20S/PA-65 Schedule M,
Part I are adjusted for Pennsylvania/federal differences
on the PA-20S/PA-65 Schedule D-I and PA-20S/PA-65
Schedule D-III.

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1

● Gains from the disposal of IRC §179 property reported
on the federal Schedule K-1 should be addressed on
PA-20S/PA-65 Schedule D-I and/or PA-20S/PA-65
Schedule D-III, Line 6.
● Net IRC §1231 gain (loss) from federal Form 4797 is
reported on PA-20S/PA-65 Schedule M and/or PA-20S/
PA-65 Schedule D. If IRC §1231 gain (loss) is classified
as PA-20S/PA-65 Schedule D gain, it is included in
PA-20S/PA-65 Schedule D-I and/or PA-20S/PA-65
Schedule D-III and reported on Line 5. PA-20S/PA-65
Schedule D-I and PA-20S/PA-65 Schedule D-III also
includes any other sales not included above. If IRC §1231
gain (loss) is classified to net profits from a business, it
is included in PA-20S/PA-65 Schedule M, Part I.

COMPLETING PA SCHEDULE D-I
ALLOCATED GAIN (LOSS) FROM THE SALE,
EXCHANGE OR DISPOSITION OF PROPERTY
WITHIN PENNSYLVANIA
In Part I, enter the allocated gain (loss) from the sale,
exchange or disposition of property within Pennsylvania.
NOTE: The gain or loss from the sale or disposition of
an intangible asset is not PA source for nonresidents
unless the intangible personal property is employed in a
Pennsylvania going concern. See PIT Bulletin 2005-02. Any
PA source gain or loss is reported on PA-20S/PA-65 Schedule D-I, Sale, Exchange or Disposition of Property Within
Pennsylvania.
BUSINESS NAME
Enter the complete name of the entity or business as shown
on the PA-20S/PA-65 Information Return.
FEIN
Enter the nine-digit federal employer identification number
(FEIN) of the entity or business as shown on the PA-20S/
PA-65 Information Return.

FILL IN THE APPLICABLE OVALS
AMENDED SCHEDULE
If this is an amended schedule, fill in the oval.
IF PART I IS BLANK
If there is no PA source gain (loss) on the PA-20S/PA-65
Information Return, then PA Schedule D-I should be blank.
Fill in the oval.

LINE INSTRUCTIONS
LINE 1
ALL PA SOURCE GAIN (LOSS) INCLUDED IN
FEDERAL ORDINARY BUSINESS INCOME (LOSS)
AND/OR FEDERAL OTHER INCOME (LOSS)
Enter the amount reported on PA-20S/PA-65 Schedule M,
Part I, Line 1 and Line 11, Column (e) (PA source gain (loss)
only).
NOTE: On the PA-20S/PA-65 Schedule D, the sum of
Part I, Line 1 and Part III, Line 1 will equal the amount
reported on PA-20S/PA-65 Schedule M, Part I, Line 1 and
2

Line 11, Column (e). Enter the gain (loss) amount on the disposition of assets in which the proceeds were not reinvested
in similar property used in the same kind of business. Enter
IRC §1256 income (loss) from the federal Schedule K, Line
11 (federal Form 1065) or Line 10 (federal Form 1120S)
without any adjustment for Pennsylvania personal income
tax purposes.

LINE 2
ALL PA SOURCE GAIN (LOSS) INCLUDED IN
ORDINARY NET RENTAL/ROYALTY INCOME (LOSS)
FROM FEDERAL FORM 8825
Enter the amounts reported on PA-20S/PA-65 Schedule M,
Part I, Lines 2, 3, and 6, Column (e) (PA source gain (loss)
only).
NOTE: On the PA-20S/PA-65 Schedule D, the sum of
Part I, Line 2 and Part III, Line 2 will equal the amount
reported on PA-20S/PA-65 Schedule M, Part I, Lines 2, 3
and 6, Column (e).

LINE 3
ALL PA SOURCE NET SHORT-TERM CAPITAL GAIN
(LOSS) FROM FEDERAL SCHEDULE D
Enter the amount reported on PA-20S/PA-65 Schedule M,
Part I, Line 7, Column (a) (PA source gain (loss) only).
NOTE: On the PA-20S/PA-65 Schedule D, the sum of
Part I, Line 3 and Part III, Line 3 will equal the amount
reported on the PA-20S/PA-65 Schedule M, Part I, Line 7,
Column (a).

LINE 4
ALL PA SOURCE NET LONG-TERM CAPITAL GAIN
(LOSS) FROM FEDERAL SCHEDULE D
Enter the amount reported on PA-20S/PA-65 Schedule M,
Part I, Line 8, Column (a) (PA source gain (loss) only).
NOTE: On the PA-20S/PA-65 Schedule D, the sum of
Part I, Line 4 and Part III, Line 4 will equal the amount
reported on the PA-20S/PA-65 Schedule M, Part I, Line 8,
Column (a).

LINE 5
ALL OTHER PA SOURCE NET IRC §1231 GAIN (LOSS)
REPORTED ON FEDERAL FORM 4797 NOT LISTED
ABOVE
Enter the amount reported on PA-20S/PA-65 Schedule M,
Part I, Line 10, Column (e) (PA source gain (loss) only).
NOTE: On the PA-20S/PA-65 Schedule D, the sum of
Part I, Line 5 and Part III, Line 5 will equal the amount
reported on the PA-20S/PA-65 Schedule M, Part I, Line 10,
Column (e).

LINE 6
ALL PA SOURCE GAIN (LOSS) FROM THE
DISPOSITION OF IRC §179 PROPERTY
Enter the amount reported on PA-20S/PA-65 Schedule M,
Part I, Line 9, Column (e) (PA source gain or loss only).

PA-20S/PA-65 D
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NOTE: On the PA-20S/PA-65 Schedule D, the sum of
Part I, Line 6 and Part III, Line 6 will equal the amount
reported on the PA-20S/PA-65 Schedule M, Part I, Line 9,
Column (e).

LINE 7
CAPITAL GAIN DISTRIBUTIONS TAXED AS DIVIDENDS
Enter the amounts reported on PA-20S/PA-65 Schedule M,
Part I, Lines 7 and 8, Column (d).

LINE 8
TOTAL PA SOURCE FEDERAL REALIZED AND
RECOGNIZED REPORTABLE GAIN (LOSS) BEFORE
CLASSIFICATION AND/OR ADJUSTMENTS FOR PA
PIT PURPOSES
Add Lines 1 through 6, minus Line 7. Enter the result on
Line 8.

LINE 9
PA SOURCE ADJUSTMENT FOR GAIN (LOSS)
REFLECTED ON PART I OF SCHEDULE M FOR
BUSINESS INCOME (LOSS) (NET PROFITS FROM
A BUSINESS, PROFESSION OR FARM)
Enter the amounts reported on PA-20S/PA-65 Schedule M,
Part I, Lines 7 and 8, Column (b) (PA source gain (loss)
only).
NOTE: If you reinvest the proceeds from assets sold in
the same line of business within the same entity, you
classify the gains or losses as net profits for Pennsylvania.
The same “line of business” is defined by the North American
Industry Classification System (NAICS) code.

LINE 10
PA SOURCE PA PIT REPORTABLE SCHEDULE D GAIN
(LOSS) BEFORE PA PIT ADJUSTMENTS
Enter the difference of Line 8 minus Line 9.

LINE 11
NET OR AGGREGATE PA SOURCE, PIT ADJUSTMENT
FOR SCHEDULE D GAIN (LOSS) FROM TRANSACTIONS REQUIRING ADJUSTMENT FOR PA/FEDERAL
GAIN (LOSS) DIFFERENCES. ITEMIZE IN PART II OF
THIS SCHEDULE.
Full detail must be provided on PA-20S/PA-65 Schedule
D-II when there is a difference between federal and
Pennsylvania gain (loss) for assets disposed. Enter the sum
of the aggregate difference on this line.
Include any other difference in gain (e.g., an installment
sale) on this line, and itemize on PA-20S/PA-65 Schedule
D-II. If there is no difference between Pennsylvania/federal
gain (loss) for assets disposed, fill in the “blank” oval on
PA-20S/PA-65 Schedule D-II.
Assets on which federal bonus depreciation was taken and
disposed in the current year may have a difference between
federal and Pennsylvania gain (loss).

LINE 12
NET ADJUSTMENT TO ARRIVE AT PA SOURCE PIT
SCHEDULE D REPORTABLE GAIN (LOSS)
Enter the sum of Lines 10 and 11.

LINE 13
PA SOURCE PARTNERSHIP AND PA S CORP GAIN
(LOSS) FROM PA-20S/PA-65 SCHEDULES RK-1
AND NRK-1
Enter the amount of PA source gain (loss) from pass through
entities.

LINE 14
TOTAL PA SOURCE SCHEDULE D NET GAIN (LOSS)
FROM PROPERTY WITHIN PENNSYLVANIA FOR
RESIDENTS ONLY
Enter the sum of Lines 12 and 13. Also enter this amount
on the PA-20S/PA-65 Information Return, Page 1, Section
III, Line 5b.

LINE 15
PA SOURCE ADJUSTMENT FOR GAIN (LOSS) ON
SALE OF SHORT-TERM PORTFOLIO INVESTMENTS
NOT USED IN WORKING CAPITAL FOR
NONRESIDENTS ONLY
Enter the amount of gain (loss) from the sale of intangible
portfolio investments. Obtain this number from entity level
books and records.

LINE 16
TOTAL PA SOURCE SCHEDULE D NET GAIN (LOSS)
FROM PROPERTY WITHIN PENNSYLVANIA FOR
NONRESIDENTS ONLY
Enter the difference of Lines 14 and 15. Allocate this line to
the PA-20S/PA-65 Schedules NRK-1 based on percentage
interest.

COMPLETING PA SCHEDULE D-II
Copy PA-20S/PA-65 Schedule D-II to list additional
properties.
SALE, EXCHANGE OR DISPOSITION OF PROPERTY
WITHIN PENNSYLVANIA
On PA-20S/PA-65 Schedule D-II, enter the allocated gain
(loss) from the sale, exchange or disposition of property
within Pennsylvania, included on federal Schedule K line
amounts.
BUSINESS NAME
Enter the complete name of the entity or business as shown
on the PA-20S/PA-65 Information Return.
FEIN
Enter the nine-digit federal employer identification number
(FEIN) of the entity or business as shown on the PA-20S/
PA-65 Information Return.

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3

FILL IN THE APPLICABLE OVALS
AMENDED SCHEDULE
If this is an amended schedule, fill in the oval.
IF PART II IS BLANK
If there is no difference in the gain (loss) on the federal return
and the gain (loss) on the PA-20S/PA-65 Information Return,
PA Schedule D-II should be blank. Fill in the oval.

LINE INSTRUCTIONS
LINES 1 THROUGH 5
TYPE OF PROPERTY
Enter one of the following codes for type of property and
include a description of the property:
R = Real
S = Security
P = Personal O = Other Intangible
(not security)
DATE ACQUIRED
Enter the date (MMDDYYYY) the property was acquired.
DATE SOLD
Enter the date (MMDDYYYY) the property was sold.
PA ALLOWED OR ALLOWABLE DEPRECIATION
Enter your Pennsylvania allowed or allowable depreciation
from your books and records.
GROSS SALES PRICE
Enter the gross sales price of the property.
COST OR OTHER PA BASIS
Enter your cost or other Pennsylvania basis from your books
and records.
DIFFERENCE IN PA/FEDERAL GAIN (LOSS)
The entity must take the gross sales price, less cost or other
Pennsylvania basis, less Pennsylvania allowed or allowable
depreciation, to obtain the Pennsylvania gain (loss).
Pennsylvania gain (loss) minus federal gain (loss) equals
the difference between Pennsylvania/federal gain (loss).
If any of the federal gain (loss) transactions require adjustment, list each transaction and show the differences in federal gain (loss).
If the difference is negative, fill in the “loss” oval.
The sum of all differences in Pennsylvania/federal gain
(loss) fields must equal the amount reported on the PA-20S/
PA-65 Schedule D-I, Line 13.

COMPLETING PA SCHEDULE D-III
ALLOCATED GAIN (LOSS) FROM THE SALE,
EXCHANGE OR DISPOSITION OF PROPERTY
OUTSIDE PENNSYLVANIA
On PA-20S/PA-65 Schedule D-III, enter the allocated gain
(loss) from sale, exchange or disposition of property outside
Pennsylvania.
NOTE: The gain or loss from the sale or disposition of
an intangible asset is not PA source for nonresidents
unless the intangible personal property is employed in a
Pennsylvania going concern. See PIT Bulletin 2005-02. Any
4

non-PA source gain or loss is reported on PA-20S/PA-65
Schedule D-III, Sale, Exchange or Disposition of Property
Outside Pennsylvania.
BUSINESS NAME
Enter the complete name of the entity or business as shown
on the PA-20S/PA-65 Information Return.
FEIN
Enter the nine-digit federal employer identification number
(FEIN) of the entity or business as shown on the PA-20S/
PA-65 Information Return.

FILL IN THE APPLICABLE OVALS
AMENDED SCHEDULE
If this is an amended schedule, fill in the oval.
IF PART III IS BLANK
If there is no outside PA gain (loss) on the PA-20S/PA-65
Information Return then PA Schedule D-III should be blank.
Fill in the oval.

LINE INSTRUCTIONS
LINE 1
ALL OUTSIDE PA GAIN (LOSS) INCLUDED IN
FEDERAL ORDINARY BUSINESS INCOME (LOSS)
AND/OR FEDERAL OTHER INCOME (LOSS)
Enter the amount reported on PA-20S/PA-65 Schedule M,
Part I, Line 1 and Line 11, Column (e) (Outside Pennsylvania
gain (loss) only).
NOTE: On the PA-20S/PA-65 Schedule D, the sum of
Part I, Line 1 and Part III, Line 1 will equal the amount
reported on PA-20S/PA-65 Schedule M, Part I, Line 1 and
Line 11, Column (e).
Enter the gain (loss) amount on the disposition of assets in
which the proceeds were not reinvested in similar property
used in the same kind of business. Enter IRC § 1256 income
(loss) from the federal Schedule K, Line 11 (federal Form
1065) or Line 10 (federal Form 1120S) without any adjustment for Pennsylvania personal income tax purposes.

LINE 2
ALL OUTSIDE PA GAIN (LOSS) INCLUDED IN
ORDINARY NET RENTAL/ROYALTY INCOME (LOSS)
FROM FEDERAL FORM 8825
Enter the amounts reported on PA-20S/PA-65 Schedule M,
Part I, Lines 2, 3, and 6, Column (e) (Outside Pennsylvania
gain (loss) only).
NOTE: On the PA-20S/PA-65 Schedule D, the sum of
Part I, Line 2 and Part III, Line 2 will equal the amounts
reported on PA-20S/PA-65 Schedule M, Part I, Lines 2, 3
and 6, Column (e).

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LINE 3

LINE 9

ALL OUTSIDE PA NET SHORT-TERM CAPITAL GAIN
(LOSS) FROM FEDERAL SCHEDULE D
Enter the amount reported on PA-20S/PA-65 Schedule M,
Part I, Line 7, Column (a) (Outside Pennsylvania gain (loss)
only).

OUTSIDE PA ADJUSTMENT FOR GAIN (LOSS)
REFLECTED ON PART I OF SCHEDULE M, FOR
BUSINESS INCOME (LOSS) (NET PROFITS FROM
A BUSINESS, PROFESSION OR FARM)
Enter the amounts reported on PA-20S/PA-65 Schedule M,
Part I, Lines 7 and 8, Column (b) (Outside Pennsylvania
gain (loss) only).

NOTE: On the PA-20S/PA-65 Schedule D, the sum of
Part I, Line 3 and Part III, Line 3 will equal the amount
reported on the PA-20S/PA-65 Schedule M, Part I, Line 7,
Column (a).

LINE 4
ALL OUTSIDE PA NET LONG-TERM CAPITAL GAIN
(LOSS) FROM FEDERAL SCHEDULE D
Enter the amount reported on PA-20S/PA-65 Schedule M,
Part I, Line 8, Column (a) (Outside Pennsylvania gain (loss)
only).
NOTE: On the PA-20S/PA-65 Schedule D, the sum of
Part I, Line 4 and Part III, Line 4 will equal the amount
reported on the PA-20S/PA-65 Schedule M, Part I, Line 8,
Column (a).

LINE 5
ALL OTHER OUTSIDE PA NET IRC §1231 GAIN
(LOSS) REPORTED ON FEDERAL FORM 4797
NOT LISTED ABOVE
Enter the amount reported on PA-20S/PA-65 Schedule M,
Part I, Line 10, Column (e) (Outside Pennsylvania gain
(loss) only).
NOTE: On the PA-20S/PA-65 Schedule D, the sum of
Part I, Line 5 and Part III, Line 5 will equal the amount
reported on the PA-20S/PA-65 Schedule M, Part I, Line 10,
Column (e).

LINE 6

NOTE: If you reinvest the proceeds from assets sold
in the same line of business within the same entity,
you classify the gains or losses as net profits for Pennsylvania. The same “line of business” is defined by the North
American Industry Classification System (NAICS) code.

LINE 10
OUTSIDE PA PIT REPORTABLE SCHEDULE D GAIN
(LOSS) BEFORE PA PIT ADJUSTMENTS
Enter the difference of Line 8 minus Line 9.

LINE 11
NET OR AGGREGATE OUTSIDE PA PIT
ADJUSTMENTS FOR SCHEDULE D GAIN (LOSS)
FROM TRANSACTIONS REQUIRING ADJUSTMENT
FOR PA/FEDERAL GAIN (LOSS) DIFFERENCES.
ITEMIZE IN PART IV OF THIS SCHEDULE
Full detail must be provided on PA-20S/PA-65 Schedule
D-IV when there is a difference between federal and PA gain
(loss) for assets disposed. Enter the sum of the aggregate
difference on this line. Include any other difference in gain,
e.g., an installment sale, on this line, and itemize on PA-20S/
PA-65 Schedule D-IV. If there is no difference between
Pennsylvania/federal gain (loss) for assets disposed, fill in
the “blank” oval on PA-20S/PA-65 Schedule D-IV.

ALL OUTSIDE PA GAIN (LOSS) FROM THE
DISPOSITION OF IRC §179 PROPERTY
Enter the amount reported on PA-20S/PA-65 Schedule M,
Part I, Line 9, Column (e) (Outside Pennsylvania gain (loss)
only).

Assets on which federal bonus depreciation was taken and
disposed in the current year may have a difference between
federal and Pennsylvania gain (loss).

NOTE: On the PA-20S/PA-65 Schedule D, the sum of
Part I, Line 6 and Part III, Line 6 will equal the amount
reported on the PA-20S/PA-65 Schedule M, Part I, Line 9,
Column (e).

NET ADJUSTMENT TO ARRIVE AT OUTSIDE PA PIT
SCHEDULE D REPORTABLE GAIN (LOSS)
Enter the sum of Lines 10 and 11.

LINE 7
CAPITAL GAIN DISTRIBUTIONS TAXED AS DIVIDENDS
Enter the amounts reported on PA-20S/PA-65 Schedule M,
Part I, Lines 7 and 8, Column (d).

LINE 8
TOTAL FEDERAL REALIZED AND RECOGNIZED
OUTSIDE PA SOURCE REPORTABLE GAIN (LOSS)
BEFORE CLASSIFICATION AND/OR ADJUSTMENTS
FOR PA PIT PURPOSES
Add Lines 1 through 6, minus Line 7. Enter the result on
Line 8.

LINE 12

LINE 13
OUTSIDE PARTNERSHIP AND PA S CORP GAIN
(LOSS) FROM PA-20S/PA-65 SCHEDULES RK-1
AND NRK-1
Enter the amount of outside Pennsylvania gain (loss) from
pass through entities.

LINE 14
TOTAL OUTSIDE PA-20S/PA-65 SCHEDULE D NET
GAIN (LOSS) FROM PROPERTY OUTSIDE PA
Enter the sum of Lines 12 and 13. Also enter this amount on
the PA-20S/PA-65 Information Return, Section III, Line 5a.

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5

COMPLETING PA SCHEDULE D-IV
Copy PA-20S/PA-65 Schedule D-IV to list additional
properties.
SALE, EXCHANGE OR DISPOSITION OF PROPERTY
OUTSIDE PENNSYLVANIA
On PA-20S/PA-65 Schedule D-IV, enter the allocated gain
(loss) from the sale, exchange or disposition of property outside Pennsylvania, as included on federal Schedule K line
amounts.

DATE ACQUIRED
Enter the date (MMDDYYYY) the property was acquired.
DATE SOLD
Enter the date (MMDDYYYY) the property was sold.
PA ALLOWED OR ALLOWABLE DEPRECIATION
Enter your Pennsylvania allowed or allowable depreciation
from your books and records.
GROSS SALES PRICE
Enter the gross sales price of the property.

BUSINESS NAME
Enter the complete name of the entity or business as shown
on the PA-20S/PA-65 Information Return.

COST OR OTHER PA BASIS
Enter your cost or other Pennsylvania basis from your books
and records.

FEIN
Enter the nine-digit federal employer identification number
(FEIN) of the entity or business as shown on the PA-20S/
PA-65 Information Return.

DIFFERENCE IN PA/FEDERAL GAIN (LOSS)
The entity must take the gross sales price, less cost or other
Pennsylvania basis, less Pennsylvania allowed or allowable
depreciation, to obtain the Pennsylvania gain (loss).

FILL IN THE APPLICABLE OVALS

Pennsylvania gain (loss) minus federal gain (loss) equals
the difference between Pennsylvania/federal gain (loss).

AMENDED SCHEDULE
If this is an amended schedule, fill in the oval.
IF PART IV IS BLANK
If there is no difference in the gain (loss) on the federal
return and the gain (loss) on the PA-20S/PA-65 Information
Return then PA Schedule D-IV is blank. Fill in the oval.

LINE INSTRUCTIONS

If any of the federal gain (loss) transactions require adjustment, list each transaction and show the differences in federal gain (loss).
If the difference is negative, fill in the “loss” oval.
The sum of all differences in Pennsylvania/federal gain
(loss) fields must equal the amount reported on the PA-20S/
PA-65 Schedule D-III, Line 11.

LINES 1 THROUGH 5
Enter one of the following codes for type of property and
include a description of the property:
R = Real
S = Security
P = Personal O = Other Intangible
(not security)

6

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