Knowledge Base

15934: PA - Asset Sale on Schedule C, D, or F


How do I indicate that an asset should be carried to the Pennsylvania Schedule C, D, or F?
Business property sales create a taxable event for both federal and Pennsylvania Individual Tax purposes. For federal purposes, this transaction will first be reported on federal Form 4797, and then on either Form 1040, Schedule 1, line 4, or the federal Schedule D. For Pennsylvania purposes, this gain will be reported on either the Pennsylvania Schedule D or on a Pennsylvania business schedule (PA Schedule C, E, or F). Whether a gain is reported as a capital or business gain depends on whether the sold asset will be replaced and used in the business. If the asset is not replaced by a similar asset, the asset is then reported on the Pennsylvania Schedule D. You, as the preparer, have the ability to designate from the federal return whether or not an asset will be replaced by making a single entry on either of these Federal screens. 

If asset sale is reported on the 4562 screen:

Specify the desired form within the schedule form data flow drop down list. If you want the gain to carry to the Pennsylvania Schedule C, choose the option labeled PA Schedule C or C from the Schedule form data flow drop list on the 4562.

If asset sale is reported on the 4797 screen:

Enter the appropriate PA Schedule in the box labeled For Schedule at the bottom of the screen. An entry will then be carried to the corresponding Pennsylvania business schedule, instead of the PA Schedule D.

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