The Section 1202 50% exclusion refers to the federal exclusion.
Pennsylvania says:
Section 1202, also called the Small Business Stock Gains Exclusion, is an Internal Revenue Code which allows captial gains from select small businesses to be excluded from federal income tax. Does Pennsylvania also follow this exclusion?
Pennsylvania does not have any provision similar to IRC 1202 that would allow gain from a sale of stock to be excluded from taxable income. The full gain from the sale of stock would be subject to PA Income Tax.
Does Pennsylvania follow the IRS exclusion for IRS Section 1202 stock?
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