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Level 2
posted Feb 15, 2023 7:52:39 PM

PA mutual fund losses - can you offset capital gains distributions

I was surprised to see TurboTax not allow the tax loss harvesting sale of mutual funds against capital gains distributions when doing my 2022 PA return

just wanted to confirm this is accurate and that i am not doing anything incorrect.  

 

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1 Best answer
Expert Alumni
Feb 16, 2023 7:10:43 AM

Yes, that is the treatment for PA capital gains distributions.  PA considers capital gains distributions from mutual funds, etc., to be dividend income and does not allow the offset to other capital gains derived from the sale of property, etc.

 

I have included below the link to the PA Department of Revenue website that shows the treatmenat of capital gains distributions.

 

PA Dividends

 

@JP4120 

1 Replies
Expert Alumni
Feb 16, 2023 7:10:43 AM

Yes, that is the treatment for PA capital gains distributions.  PA considers capital gains distributions from mutual funds, etc., to be dividend income and does not allow the offset to other capital gains derived from the sale of property, etc.

 

I have included below the link to the PA Department of Revenue website that shows the treatmenat of capital gains distributions.

 

PA Dividends

 

@JP4120