PA - American Jobs Act of 2004 Conformity

From TaxAlmanac

Pennsylvania American Jobs Act of 2004

Pennsylvania does not conform to the American Jobs Act of 2004. This was signed into law on October 22, 2004. This legislation provides for various business tax and agricultural tax incentives, deduction of state and local general sales taxes and various other provisions. This includes the following provisions:

• The exclusion of gain on sale of a principal residence does not apply if the principal residence was originally acquired in a like-kind exchange in which any gain was not recognized within the prior five years.
• A tax deduction for charitable contributions of patents and similar intellectual properties is allowed on form 8283.
• A taxpayer can expense up to $5,000 of business start-up costs under IRC §195(b) up to $5,000 of organizational costs under IRC §§248(a) and 709(b).
• Individuals may elect to deduct state sales and use taxes rather than state and local income taxes on their federal returns on Schedule A, line 5b.

Pennsylvania allows the exclusion of the gain from the sale of a principal residence if the residence was acquired in a like-kind exchange. Therefore the gain is not included on Form PA-40, Line 5. Start-up and organizational costs allowed on the federal return are added back to business income on PA Schedule C-F.