PA tax on sale of rental property in VA

[officer100PA]

I live in PA. I owned a rental property in VA which I sold in Sept 2021.  I realized a capital gain.  On the PA tax form the capital gain is listed but then in addition is a line called Sec 1202 50% exclusion.  Dispite the word "exclusion" this amount is added to the capital gain to determine my state tax.  Is this correct?  Is there something within Turbotax that I missed that is adding this extra tax on top?  I did not have this extra tax on the federal form.

[ErnieS0]

The Section 1202 50% exclusion refers to the federal exclusion.

Pennsylvania says:

Section 1202, also called the Small Business Stock Gains Exclusion, is an Internal Revenue Code which allows captial gains from select small businesses to be excluded from federal income tax. Does Pennsylvania also follow this exclusion?

Pennsylvania does not have any provision similar to IRC 1202 that would allow gain from a sale of stock to be excluded from taxable income. The full gain from the sale of stock would be subject to PA Income Tax. 

Does Pennsylvania follow the IRS exclusion for IRS Section 1202 stock?

[officer100PA]

Thank you for the reply, but it doesn't address my question.  Using Turbotax the total amount of capital gain is listed on PA Schedule D and then on top of that is an additional amount that is given the label "Sec 1202 50% exclusion".  So I am paying tax on more than 150% of the capital gain.  I do not understand why.  Your answer is that federal tax doesn't recognize this exclusion.  Seems to me that means my federal tax should be on a higher value than for the state of PA, but it is opposite.  Thank you. 

[PatriciaV]

Please clarify what amount of capital gain is reported for this sale on Form 8949 of your Federal return, and the amount(s) on Schedule D of your PA return.

[officer100PA]

The amount listed on Federal Form 8949 is -1.  The capital gain I realized (sales price - cost basis + depreciation = $X.  That is the amount subject to tax on the federal form.  On PA form 1555 the $X number is listed and then added to it is this Section 1202 number of 0.67*$X.  It is this 0.67*X number that puzzles me as it seems I am being taxed more than once.