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ss7777777
New Member

HELP 2023 Pennsylvania State Tax Return Doesn't Recogonize 1031 exchange of rental property

Please help me! PA began allowing 1031 exhanges in 2023. However TurboTax doesnt reflect the 1031 exchange on the PA tax return, instead the PA return calculates it as a capital gain. I entered the 1031 exchange correctly in TurboTax and the 1031 exchange shows up correctly in the Fedral return , but not in the PA return. Can someone guide me on what to do here. I am trying to e-file the return today

Thanks in advance for your help!

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3 Replies

HELP 2023 Pennsylvania State Tax Return Doesn't Recogonize 1031 exchange of rental property

 
Ddcon1962
New Member

HELP 2023 Pennsylvania State Tax Return Doesn't Recogonize 1031 exchange of rental property

I have the same problems. My federal forms look fine for the 1031 exchange however, the PA return doesn’t show anything on the sale of my PA property. I don’t know if it’s because all of the gain is deferred, but there is no PA schedule D

 

DaveF1006
Employee Tax Expert

HELP 2023 Pennsylvania State Tax Return Doesn't Recogonize 1031 exchange of rental property

It depends. If your 1031 exchange fully deferred the gain, Pennsylvania usually doesn’t require you to file a Schedule D. PA receives a copy of your federal return, which includes Form 8824, so they’re already aware of your 1031 exchange.  

 

@Ddcon1962 

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