Schedule D

[gman11]

I live in Texas full time and have a rental property in Pennsylvania. If my only source of income from PA is only through rental money and my primary residence is TX, am I suppose to pay taxes on capital gains on stocks that was sold for the year to PA? 

Thank You

[MaryK4]

No, if you were a Texas resident and the stocks would not be Pennsylvania-source income,.  

Nonresidents do not pay PA income tax on gains realized on the sale, exchange or disposition of intangible personal property, such as stocks and bonds, nor may nonresidents use the loss from such sales against other taxable gains. Nonresidents must pay PA income tax on gains from the sale, exchange or disposition of real property in Pennsylvania.

[gman11]

Hi MaryK,

I was thinking the same as you. Under my PA Schedule D, it shows a "Total PA taxable Gain" of $1961. This was added on top of the PA schedule E of the "Net Rent and  Royalty Income of $6495". So on my Pennsylvania tax return summary, it show a Taxable income of $8456. 

I didn't see an option on Turbo tax to not include the capital gains from the stock sales. 

[PattiF]

The source of the capital gain income should be coded as Texas. That should eliminate this from the Pennsylvania return.

[gman11]

Can someone kindly show me where I can select the state I live in as the source of the capital gain in the TurboTax software? I have tried looking for it with no luck. Thank you

[KrisD15]

You would not do that on your Schedule D or the Federal return at all. 

You would ALLOCATE your income, including the capital gain, to the state it is attributed to, when you start your state returns. 

[gman11]

I live in Texas which does not require a state return. The only state return I did was for Pennsylvania where my rental property is located. Is it because I only filed 1 state return that it does not ask me which state I want to allocate my capital gains income to? 

[JohnB5677]

If you had capital gain from the sale of the property in PA it would be allocated to that state, but Texas, as a non income tax state, would not need an allocation of capital gain.

I'm sure you entered PA as a non resident state.

[gman11]

I had capital gains from selling stock as a resident of Texas. Pennsylvania (non-resident state) is charging me income tax for those capital gains on stocks unrelated to my business in PA. How can I allocate my gains to just Texas. PA is entered as a non-resident state. 

I just need help finding the option on turbo tax to not be taxed for my capital gains from stock for PA state income tax when I live in Texas. Thanks 

[JohnB5677]

First go through the Pennsylvania interview.  There will be a section to allocate the various forms of income.  This can be confusing, so read the questions carefully. 

Also, if your 1099-B (Summary of stock trades) has box 14, enter TX.