- quote -

For real estate you have a couple of options.

1. Prorate on the basis of months owned prior to and after
that date.

2. An appraisal based on condition back then and comparable
sales. (A little more expensive, but good to use if the home
peaked in value then declined or leveled off.)

It's been a long time since I was a Tax Examiner in the Bureau of
Individual Taxes for PA Dept. of Revenue, but I still remember a
few tricks.

Gary

--
You can probably X figure out X which letters to X delete to
derive my email address X.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Arthur L. Rubin wrote:

- quote -

Just to clarify--I believe by the terms used you mean the
following:

General Rule--residents of the state are allowed a credit on
their income tax return for taxes paid to any other state as
a nonresident that is also taxed by the resident state

Reverse General Rule--residents of the state are allowed the
credit *ONLY* if residents of the other state would get a
credit on their resident return for taxes paid to the
reverse general rule state

The practical impact of this is that you will get a credit
on the tax return of the resident state *UNLESS* both states
in question are reverse general rule states. In that case,
the credit goes on the nonresident return.

I believe the following are the reverse general rule states:

Arizona
California
Indiana
Oregon
Virginia

Arizona and Oregon can probably be blamed on California
<grin> , since both states tend to pattern their laws on
California law absent a compelling reason they can think of
to do otherwise. So I suspect that when the legislators
were looking around to draft a state tax credit provision,
they looked at what California had and copied it <grin> .

I'm not sure why Indiana and Virginia are sitting out there
with their rules, since they don't have any "nearby" states
that have the same rule.

--
Ed Zollars, CPA
Phoenix, Arizona

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Drewremedy wrote:

- quote -

Only state income taxes, and they use the reverse general
rule, but PA uses the general rule, so it works under the
general rule. The relevant form is 540 Schedule S.

--
This account is subject to a persistent MS Blaster and SWEN
attack. I think I've got the problem resolved, but, if you
E-mail me and it bounces, a second try might work. However,
please reply in newsgroup.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

- quote -

June 1 is the date. But then you have to prorate to
determine the cost back then. Sometimes more of a pain then
paying the tax.

Helen, EA in PA
Member of The Tax Gang
President, PA Society of Enrolled Agents
Campaigning for NAEA Board of Directors - Looking for YOUR vote

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

I agree your PA gains are fully taxable in PA.

HOWEVER I do NOT know if CA allows credit on CA taxes for
taxes paid to other governments. You need to check that
point.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

- quote -

This may not help, but Pennsylvania taxes only the gains
that occurred after June, 1971 (I'm hazy on the date, but I
know it's in the early 70s.)

Gary

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"John" <John[at]nospam.com> wrote:

- quote -

PA sourced income, PA return required.

--
David M. Woods, EA
Boston, MA 02109

Postings here are general information only and not to be
relied upon as advice.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

John wrote:

- quote -

You need to file in PA, as the property is located there.
You SHOULD be able to a credit on one of the state tax
returns (I believe CA) for the PA non-resident tax.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"John" <John[at]nospam.com> wrote:

- quote -

John,

Better check the PA rules - my bet TAXABLE in PA.

--
Regards,

Mark X Rigotti

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

- quote -

Wrong. You will file the income to PA and pay taxes on that
(2.8% of profit) to PA. Then you will take a credit on your
CA return for the taxes paid to PA. It does not matter if
you were living here or not, you sold property in PA, you
owe tax to PA.

Helen, EA in PA
Member of The Tax Gang
President, PA Society of Enrolled Agents
Campaigning for NAEA Board of Directors - Looking for YOUR vote

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

- quote -

You must file in PA 'cause you made a gain on PA tangible
property. What follows is rather long but it explains the
taxes to which you are subject:

Nonresidents use the same PA-40 that residents and part-year
residents use. Make sure when you complete your return that
you indicate that you are a nonresident by filling in the
oval for "nonresident."

If you are a nonresident, Pennsylvania taxes you on the
following kinds of income from PA sources:

Compensation. Pennsylvania taxes nonresidents on
compensation for services performed in Pennsylvania, unless
you are a resident of one of the reciprocal agreement states
(Indiana, Maryland, New Jersey, Ohio, Virginia, or West
Virginia). If you are a resident of a reciprocal agreement
state, your Pennsylvania employer should withhold and remit
the tax to that state.

Net Income or Loss from the Operation of a Business,
Profession, or Farm. Pennsylvania taxes nonresident owners
on all income from the operation of a business entity in
Pennsylvania.

If you derive income from sources both inside and outside
Pennsylvania, you should maintain separate accounts and
records that clearly reflect your PA business activity.
Otherwise, you must file a PA Schedule NRH to apportion your
income.

Net Income or Loss from the Sale, Exchange, or Disposition
of Property. Pennsylvania taxes nonresidents on the gain
from the sale of any real or tangible personal property
located in Pennsylvania.

Filing Tip: Pennsylvania does not tax nonresidents on the
gain from the disposition of intangible property, nor allow
the use of any loss from such a disposition to reduce other
PA taxable gains.

Important: If you sell property in your former state before
moving into Pennsylvania, you are not subject to tax on the
gain.

However, if you moved from Pennsylvania to another state and
then sell property or any other tangible property in
Pennsylvania, you must report the gain. You may qualify for
an exclusion from paying tax on the gain of the sale of your
principal residence, whether within or outside Pennsylvania.
More information is available in the brochure, Profit on the
Sale of Your Principal Residence (REV-625).

Net Income or Loss from Rents, Royalties, Patents, and
Copyrights. Pennsylvania taxes nonresidents on the net
income from the use of property located in Pennsylvania or
used in Pennsylvania.

Estate or Trust Income. Pennsylvania taxes nonresident
beneficiaries on income from an estate or trust, only to the
extent the PA source income to the beneficiaries is taxable
to nonresidents."(end PA quote)

Having said that, you likely will qualify for a credit on
your CA tax return.

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Lived in California for past three years, sold property In
Pennsylvania for a realized gain of $70K in 2003 (no
exclusion allowed).

Correct me if I am wrong.
I File schedule D for the gain; California gets its share as
straight income since it changes the AGI.
I don't need to file in Pennsylvania because I did not live
there when I made the income.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->