Capital gains distributions
PA source
UltraTax CS doesn't treat capital gains distributions as state source by default. To code them as state source, go to the federal
Income
screen and use the postal code PA
in the Capital gains or (losses)
statement.Capital gains and dividends
The state needs capital gains distributions displayed separately from ordinary dividends. A statement is available on the PAK1 and PAK1T screens. Note that capital gains distributions combine with dividends on the Income Allocation worksheet. Pennsylvania taxes capital gain distributions as dividends, not gains.
Undistributed long-term gains
Per PA PIT Ruling No. PIT-99-004, 01/21/1999, Pennsylvania doesn't tax undistributed long-term capital gains from federal Form 2439.
Tangible gains
Tangible gains to non-resident beneficiaries: Per PA Department of Revenue, only Tangible gains are to go to Nonresident Beneficiaries. Gains entered in the
Capital gains or (losses)
field on the federal Income screen won't transfer to the NR beneficiaries unless there's an X
in the Tangible column.
