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Investors & landlords
Yes. Report the sale on your Pennsylvania income tax return because PA does not recognize like kind exchanges.
Pennsylvania tax law contains no such provision, the difference between the basis of the old property and the current market value of all property received, including cash and cash equivalents, in exchange is the taxable gain and reported on PA-20S/PA-65 Schedule M, Part B, Section B, Line c.
Definitions of the like-kind properties can be found in IRC Section 1031.
You will not get taxed twice. You will have a separate cost basis for the property for federal, South Carolina and Pennsylvania purposes. The tax gain will be added to the cost basis for Pennsylvania purposes.
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‎February 15, 2021
7:33 PM