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property it acquired on or after June

operations other than real estate is

Fill In the

1, 1971, on the date of acquisition.

first aggregated and then classified

The entity must adjust the basis of

for Pennsylvania personal income tax

Applicable Ovals

property it acquired before June 1,

purposes as either Schedule D gain

1971, to reflect the property’s value

(loss) or net profit (loss).

Amended Schedule

on that date. For determining a gain,

●

All aggregate federal gain (loss)

the basis of such property is the

If this is an amended schedule, fill in

that is not classified as net profits

greater of (1) the property’s cost or

the oval.

and reported on PA-20S/PA-65

other basis, as adjusted, or (2) the

Schedule M, Part A are adjusted for

property’s fair market value on June

If Part I is Blank

Pennsylvania/federal differences on

1, 1971. For determining a loss, the

the PA-20S/PA-65 Schedule D-I and

If there is no difference in the gain

basis of such property is the cost or

PA-20S/PA-65 Schedule D-III.

(loss) on the federal return and the

other basis, as adjusted, without

●

gain (loss) on the PA-20S/PA-65

Gains from the disposal of IRC §

reference to its fair market value on

Information Return then PA Schedule

179 deductions reported on the

June 1, 1971. For instructions on

D-I should be blank. Fill in the oval.

federal Schedule K-1 should be

how to determine the basis of assets

addressed on PA-20S/PA-65

acquired on or before June 1, 1971,

Schedule D-I and/or PA-20S/PA-65

obtain REV-1742, Gain or Loss on

Schedule D-III, Lines 6.

Line Instructions

Property Acquired Prior to June 1,

●

Net IRC § 1231 gain (loss) from

1971, PA Schedule D-71.

federal Form 4797 is reported on PA-

Report the kinds of transactions

Line 1

20S/PA-65 Schedule M and/or PA-

in the following table on PA-20S/PA-

20S/PA-65 Schedule D. If IRC § 1231

All PA-Source Gain (Loss)

65 Schedule D. However, nonresident

gain (loss) is classified as PA-

Included in

Federal

Ordinary

owners may or may not have to

20S/PA-65 Schedule D gain, it is

report the gains (losses).

Business Income (Loss)

and/or

included in PA-20S/PA-65 Schedule

Federal Other Income (Loss)

D, Part I and/or PA-20S/PA-65

Enter the amount reported on PA-

Note.

Gain (loss) from

Schedule D, Part III and reported on

20S/PA-65 Schedule M, Part A, Line

ordinary business

Line 5. PA-20S/PA-65 Schedule D,

1 and Line 11, Column (e)

transactions where the

Part I and PA-20S/PA-65 Schedule D,

(Pennsylvania-source gain (loss)

proceeds are reinvested in the same

Part-III also includes any other sales

only).

line of business is classified as

not included above. If IRC § 1231

incurred in the ordinary course and

gain (loss) is classified to net profits

Note.

On the PA-20S/PA-65

operations of the business,

from a business, it is included in PA-

Schedule D, the sum of Part

profession or other qualified activity.

20S/PA-65 Schedule M, Part A.

I, Line 1 and Part III, Line 1

The determination of whether gain is

will equal the amount reported on

classified as incurred in the ordinary

Completing

PA-20S/PA-65 Schedule M, Part A,

course of operations of the business,

Line 1 and Line 11, Column (e).

profession or other qualified activity

PA Schedule D-I

Enter the gain (loss) amount on the

is a factual determination that

disposition of assets in which the

requires a tracing of the sales’

proceeds were not reinvested in

proceeds and the reinvestment of the

Allocated Gain (Loss) from

similar property. Enter Section 1256

proceeds in the same line of business

the Sale, Exchange or

income (loss) from the federal

as defined under the North American

Disposition of Property

Schedule K, Line 11 without any

Industry Classification System

within Pennsylvania

adjustment for Pennsylvania personal

(NAICS) code.

income tax purposes.

In Part I, enter the allocated gain

Refer to the Pennsylvania

(loss) from the sale, exchange or

Personal Income Tax (PA PIT) Guide,

disposition of property within

Chapter 12 for the specific rules used

Line 2

Pennsylvania.

to define a line of business under the

Enter whole dollars only. If this is

All PA-Source Gain (Loss)

North American Industry

an amended schedule, fill in the oval.

Included in Ordinary Net

Classification System code.

If Part I is blank, fill in the oval.

The determination of whether

Rental/Royalty Income (Loss)

gains are classified as incurred in the

from Federal Form 8825

Business Name

ordinary course of operations of the

Enter the amounts reported on PA-

Enter the complete name of the

business, profession or qualified

20S/PA-65 Schedule M, Part A, Lines

entity or business as shown on the

activity are not determined based on

2, 3, and 6, Column (e)

the character of the federal income.

PA-20S/PA-65 Information Return.

(Pennsylvania-source gain (loss)

As an example, ordinary income

only).

recapture is not automatically

FEIN

classified as incurred in the ordinary

Note.

Enter the nine-digit federal employer

On the PA-20S/PA-65

course of operations of the business,

identification number (FEIN) of the

Schedule D, the sum of Part

profession or qualified activity.

entity or business as shown on the

I, Line 2 and Part III, Line 2

Likewise, as to the long-term and

PA-20S/PA-65 Information Return.

will equal the amount reported on

short-term federal classification as

PA-20S/PA-65 Schedule M, Part A,

Schedule D gain:

Lines 2, 3 and 6, Column (e).

●

Aggregate federal gain (loss) from

Instructions For Form Pa-20s/pa 65 - Schedule D - Sale, Exchange Or Disposition Of Property - 2013 Page 2

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