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Pennsylvania makes no provision for capital gains. There are no provisions for long-term and short-term gains. Losses are recognized only in the year in which some identifiable event closes and completes the transaction and fixes the amount of loss so there is no possibility of any recovery.
?Pennsylvania's current statutory NOL limitation is the most stringent in the United States. Many states have no limitation and other states allow an 80% NOL deduction in comparison to Pennsylvania's 40% NOL deduction. If the limitation was amended or rescinded, O-I Glass Inc.
2022 Pennsylvania Income Tax Return (PA-40)
For Pennsylvania personal income tax purposes, there are no passive loss rules as defined under IRC section 469; consequently, there will be both timing and permanent differences for Pennsylvania personal income tax purposes.
Depletion for Pennsylvania Pass Through Entities Pennsylvania personal income tax rules do not allow a deduction for depletion in excess of basis in the property. If the taxpayer's basis is negative, then the taxpayer must adjust the capital account. See PA Personal Income Tax Guide - Pass Through Entities.
Use PA-40 Schedule E to report the amount of net income (loss) from rents royalties, patents and copyrights for indi- vidual or fiduciary (estate or trust) taxpayers. Refer to the PA Personal Income Tax Guide ? Net Income (Loss) from Rents, Royalties, Copyrights and Patents sec- tion for additional information.
Use PA Schedule C to report income or loss from a business you operate, or a profession you practice, as a sole proprietor. Your activity qualifies as a business if your primary purpose for engaging in the activity is income or profit, and you conduct your activity with continuity and regularity.