PA Income Tax of Gains from Primary Residence

[rosanne125]

My husband and I will soon be selling our primary residence. We've lived in our home for 38 years and have never used any portion of it for business. It will probably sell for more than the $500,000 married filing jointly exclusion, even after cost basis and expenses. I am having a problem figuring out where this info goes on PA Schedule 19 worksheet and PA Schedule D. Nowhere on those forms do they have a place to subtract the $500,000 exclusion from the gain. Can someone walk me through this. Thanks so much.

[ThomasM125]

The exclusion of gain of sale of your primary home is not limited to $500,000 in Pennsylvania as it is on the federal return. You can exclude the entire gain if you qualify per this article from the Pennsylvania Department.

If you enter the sale of your primary residence as such in the federal section of TurboTax, when you go through the state section you will see a screen that says Taxable Sale of Principal Residence. Choose continue on that screen and TurboTax will have you complete the Taxable Sale of Principal Residence worksheet, which will populate the entries on PA Schedule 19 that are associated with your home sale.

You enter you home sale in the federal section of TurboTax in the Wages and Income section, then Less Common Income, then Sale of Home (less common income.)

[rosanne125]

Thanks very much. This will be a big help!