Schedule C loss not transferring to Pennsylvania Return

[thompson-traci]

Hi,

I have a loss on a schedule C.  The income from the Sch C is transferring into my PA return but the loss is not offsetting my other income.  I am ending up paying PA tax on the loss.  Please advise.

[RobertB4444]

Pennsylvania has a couple of weird rules that might apply here.  The state limits section 179 deduction to $25,000 in any year.  It also does not recognize the federal bonus depreciation.  So if either of those items generated your loss then they won't be recognized on your Pennsylvania return.

@thompson-traci