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You may not offset income in one PA income class with a loss in any other PA income class and there is no carryovers.
PA tax return, I have a capital loss from stock and capital gains from mutual funds but my losses are not deducted from my capital gains? Why? This should be the same asset class?
You are correct, it is the same asset class (Forms 1099-B). Ownership does affect the outcome.
Pennsylvania also has no provisions for the carryover of losses from one tax year to another year. Furthermore, Pennsylvania does not allow an offset of loss against gain from one class of income to another or between two taxpayers (i.e., spouses). This could be a reason you do not see what you are looking for. PA Overview of Capital Gains and Losses
The loss should offset the gain to arrive at the net result. The Pennsylvania (PA) return does allow you to make adjustments on your return as you go step by step through the tax return interview and it allows you to select the owner of the property/stock or mutual fund.
I selected joint ownership, my return comes out accurately based on the images below. Be sure to 'Preview your PA Tax Summary' by using the steps below.
I realize ownership matters & this is where the error seems to be. I did not check joint ownership, however, I have capital gains & I have the capital loss. I would think the capital loss should be used to lower my capital gains. It does not. Is this a bug in TurboTax or is my only option "Joint Ownership"?
In case you did not see my post on another thread, in PA capital gain distributions from mutual funds are reported as Dividends on Line 3. Capital losses from Line 5 cannot be used to offset them.
For more information, see the PA-40 instructions pages 17-18: "Report capital gains distributions received from mutual funds as PA taxable dividend income, even though you report such distributions as capital gains on federal Schedule D."
Wow! Well done. Thank you.
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