Pennsylvania capital gains wash sale

mooch91
mooch91 Member Posts: 1 Newcomer
in State Filing

Trying to track down a discrepancy between a 2025 Pennsylvania state filing completed by a CPA and one generated by FreeTaxUSA. I have achieved a match on the federal filing.

It may be coincidental, but the difference I have identified is equivalent to the value of wash sales reported on the federal filing.

My understanding is that at the federal level, losses from wash sales are disallowed - the loss is added back to the cost basis.

But for Pennsylvania, the state filing does not follow the federal wash sale rule - no wash sale add-back applies.

Can it be confirmed how FreeTaxUSA handles wash sales at the Pennsylvania state level?

(Note: I'm not trying to take advantage of this allowance; the washes happened, just want to properly tie out the two returns.)

Thanks.

Comments

  • MatthewD
    MatthewD FreeTaxUSA Admin, FreeTaxUSA Agent Posts: 1,052 image
    Hello Mooch91,

    In our software, the Pennsylvania state software has a screen called, "PA Capital Gain or Loss" where you record the gain or loss for PA. The wash sale is not allowed and so the entire loss is recorded when the stock sale takes place.

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