officer100PA
Returning Member

PA tax on sale of rental property in VA

I live in PA. I owned a rental property in VA which I sold in Sept 2021.  I realized a capital gain.  On the PA tax form the capital gain is listed but then in addition is a line called Sec 1202 50% exclusion.  Dispite the word "exclusion" this amount is added to the capital gain to determine my state tax.  Is this correct?  Is there something within Turbotax that I missed that is adding this extra tax on top?  I did not have this extra tax on the federal form.