For Pa state tax, can I offset mutual fund capital gains with loss from sale of stock?

[cmitman]

Pa normally includes capital gains as dividends for tax purpose.  If I have a $2000 loss from sale of stock, can I deduct it from $5000 capital gain from mutual fund distribution?

[Vanessa]

Yes,  you can use the stock sale losses to offset the mutual fund gains. 

PA has one Schedule D to report the sale, disposition or exchange of property per taxpayer (you cannot use your spouses' losses to offset your gains).  All items that are entered on line 1 of this form can be used to offset one another in the year the gain or loss is incurred. 

Basically, line 1 of Schedule D reports all sales of property line 2 adds them all together whether they are gains or losses. 

[cmitman]

Answer does not consider normal distribution of capital gains goes on Schedule B, not schedule D.  Pa schedule B says to take Cap Gain distribution from Federal schedule D.  Do I use Federal sched D line 13 or line 15 (which is lower) to transfer to Pa schedule B line 10?