I am a PA resident with a rental propriety in SC. I sold the retail property in SC, but did valid 1031 exchange. I understand that PA does not recognize 1031 exchanges. Since the 1031 exchange defers the tax on the sale in SC, do I still have to report the sale in PA as a taxable transaction in the year of sale and pay the PA state tax on the sale? If so, I will get taxed twice on this sale for state tax purposes
