Looking for a Pennsylvania Tax Forms And Templates? Download it for free!

SALE OF YOUR

CONTACT INFORMATION

PRINCIPAL RESIDENCE

AND PA PERSONAL INCOME

What is a residence?

He changed jobs and moved to Pittsburgh in July

Online Customer Service Center

TAX IMPLICATIONS

2002, but he maintained his Harrisburg home.

A residence is a house, lodging or other place of

He did not rent it or use it for any other purpos-

habitation, including a trailer or condominium

es. He moved back to his home in Harrisburg in

that:

Taxpayer Service & Information Center

2003 and lived there until he sold it in 2005.

John meets the requirement for using his house

Personal Taxes: 717-787-8201

•

Has independent or self-contained cooking,

sleeping and sanitation facilities;

as his principal residence for at least two years

Business Taxes: 717-787-1064

during the five-year period preceding the sale.

e-Business Center: 717-783-6277

Was used and physically occupied by a taxpay-

•

er for residential purposes; and

If John had never moved back to his Harrisburg

Automated 24-hour FACT & Information Line

home, he would not meet the use requirement

Was not occupied or used by a taxpayer on a

•

for this exclusion. Even though he never rented

1-888-PATAXES (728-2937)

sporadic and transient basis, or only for a def-

his house or used it for any other purpose, John

Touch-tone service is required for this toll-free call.

inite and promptly accomplished purpose.

would have to pay PA income tax on any gain he

Call to order forms or check the status of a personal

realized from the sale of his Harrisburg home.

What are the requirements to exclude from

income tax account, corporation tax account or prop-

PA-taxable income the gain from the sale of

erty tax/rent rebate.

(3) Ownership: The law requires that a tax-

a principal residence?

payer owned the residence as a principal resi-

The seller(s) must meet these four require-

Automated Forms Ordering Message Service

dence for a total of at least two years during the

ments:

five-year period preceding the date of sale.

1-800-362-2050

(1) Date of Sale: The sale of the principal res-

Example: Mary leased one-half of a house in

Service for Taxpayers with Special Hearing and/or

idence must be after Dec. 31, 1997. The date of

State College and resided there since 2000. In

Speaking Needs

the sale is the date the buyer accepts the deed

2002, she bought the entire property and used it

and the title passes from the seller to the buyer,

1-800-447-3020

as her principal residence until she sold it in

usually the date of settlement.

2005. Mary meets the ownership requirement

for this exclusion.

Call or visit your local

If the seller postpones delivery of the deed, the

Department of Revenue district office, listed in the

sale is the date possession and the burdens and

However, if Mary had bought the house in 2004,

blue pages of local telephone directories.

benefits of ownership pass from the seller to the

she would not meet the ownership requirement.

buyer. For a condemnation, the date of the sale

Generally, homeowners who owned and used

is the date the taxpayer receives the condemna-

Important: The taxpayer does not have to meet

their homes as principal residences for at

tion proceeds. For destruction or casualty loss,

the use and ownership requirements simultane-

least two of the five years prior to the date of

the date of sale is the date the taxpayer receives

ously, but the taxpayer must meet both during

sale will qualify for exclusion of the gain from

the casualty insurance proceeds or damages.

the five-year period preceding the date of the

the sale of a personal residence from PA

sale.

taxable income.

(2) Use: The law requires that a taxpayer used

the residence as the principal residence for a

(4) Prior Sale: To qualify for the exclusion, the

total of at least two years during the five-year

taxpayer could not have sold another principal

period preceding the date of sale.

residence within the two years preceding the

date of sale of the current residence.

Example: John bought a house in Harrisburg on

Jan. 1, 2001. He lived there until July 1, 2002.

Example: Rob and Ann owned and lived in a

REV-625 PO (08-10)

Form Rev-625 Po - Sale Of Your Principal Residence And Pa Personal Income Tax Implications

Related Articles

Related forms

Related Categories