North Carolina D-400 Schedule PN is used to compute the NC percentage of total income. That percentage is on line 24.
That percentage is transferred to line 13 of NC D-400.
North Carolina uses the percentage on line 13 to calculate the percentage of NC taxable income. This is how NC decided to compute income.
You to not have enter passive loss carryovers on your state return. NC starts with federal income every year. If you use passive loss carryovers on federal to offset passive income, that amount will be included in federal adjusted gross income and passed through to NC income.
The loss rules are the same for federal and state so there is no need for separate accounting.
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