PA mutual fund losses - can you offset capital gains distributions

JP4120 · ‎February 15, 2023

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.

JosephS1 · ‎February 16, 2023

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

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View solution in original post

JosephS1 · ‎February 16, 2023

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

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"