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Unlike the federal government, Pennsylvania makes no distinction between short-term and long-term capital gains ? or even between capital gains and ordinary income. Instead, it taxes all capital gains as ordinary income, using the same rates and brackets as the regular state income tax.
Some types of income are exempt from Pennsylvania state income tax, including child support, alimony, unemployment payments, and some capital gains on the sale of a primary residence. Some deductions are allowed for contributions to educational savings accounts and medical or health savings accounts.
You may set up payment arrangements for personal income tax liabilities by contacting our Collection Unit directly at 717-783-3000. Payment plans can also be handled by the Revenue district offices...
Losses are not recognized on the sale of property that was not acquired as an investment or for profit such as personal use property. Pennsylvania also has no provisions for the carryover of losses from one tax year to another year.
Pennsylvania only honors installment sales of real and tangible property and taxes 100% of the gain from intangibles at the time of the sale.
The installment sale method is not permitted for sales of intangible personal property, transactions for the purpose of lending money or rendering services, or for taxpayers using the accrual method of accounting.
Major items exempt from the tax include food (not ready-to-eat); candy and gum; most clothing; textbooks; computer services; pharmaceutical drugs; sales for resale; and residential heating fuels such as oil, electricity, gas, coal and firewood. The Pennsylvania sales tax rate is 6 percent.
Wash sales are treated as two separate transactions. Pennsylvania does not limit the loss in a wash sale.