Business & farm

You are correct.  Pennsylvania (PA) looks at each transaction in the tax year independently.  Then after combining all capital gains and losses for a net result in that calendar year.  If that net result should happen to be a negative or loss, it cannot be used against any other class of income on the PA return. 

When you are preparing the PA return in the State interview, you will reach a page titled 'Schedule of Gains/Losses'. You should not need to edit the wash sale for PA, but review your sales on this page.  Do not check the box beside 'This sale is not taxable in PA' (this could apply to a nonresident).

See the image below for assistance. In my example the loss was $100, named Wash Sale vs a stock name or symbol.