Resident of NJ, but sold a vacation home in Pennsylvania in 2023 - TT won’t apply capital gains to nonresident PA return

Forum|Forum|2 years ago
February 18, 2024
1 reply
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Instead the capital gains are added to NJ income only and taxed there.

I expect PA will want their “cut” of capital gains resulting in the sale of a property there, and that NJ will “forgive” that income so I’m not double taxed but I can’t get to any menu that allows that.

Please advise. I should add, I also moved primary residence from NJ to.NY in 2023, and sold my NJ home (no taxable gains on that sale). Not sure if that’s causing the issue.

TurboTax Premier Online

DawnC

Employee

Make sure you have the personal information set-up correctly. You should have your move dates in 2023 that generate 2 part-year resident returns. And you should have PA listed as Other state income, which generates a nonresident return for PA. When you go through the PA nonresident return, there should be a screen that allows you to indicate the capital gain income belongs to PA. The screen will show all of your federal income and allow you to enter what income belongs to PA (PA-sourced) - but you do this in the state interview, not the federal section.

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ScottyFAuthor

Thanks. I believe I have the personal info set up correctly. There was no screen to indicate the capital gain income belongs in PA

Here’s what I get for the sale of my two properties (the net gain on PA property sale is censored):

Net gain or loss

Your net Pennsylvania gain on the residential part of the sale of your personal residence is $0

Your net Pennsylvania gain on the business part of the sale of your personal residence is $X. This will be reported as income on this tax return on Sch D

but there in no PA scedule D

DawnC

Employee

When you click through the PA return, you should come to a screen titled Gain and Loss Summary. If you click Edit next to the sale, do you have any of the boxes checked? There should be a Schedule D TP and a Sched Gain/Loss in your PA forms list.