State tax filing
Your initial input for the 1031 like-kind exchange will need to start in the federal interview section. This input will then transfer to your state return.
Where do I enter a like-kind or Section1031 exchange?
After you enter the applicable information in the federal interview section, proceed through the state interview screens. You will see a screen titled PA Ownership of Gains and Losses.
Be sure to input the correct basis in the cost basis box and mark the box that says this sale is not taxable in PA. This will ensure the gain is not reported until it is eventually reported on the sale of the property that is exchanged in the future.
