@ZoltanB45 wrote:
North Carolina would have a capital loss of $1000 in 2021.
North Carolina does not allow a carryover loss deduction. They allow you to take the deduction that year. For example, if in 2022 you have a capital loss of $5000, the Federal Return would show a $3,000 loss. North Carolina would allow the full $5,000 loss.
Thanks for the response! Can you elaborate how that would look like in terms of filling out the forms? Let's say in 2022 my hypothetical numbers look like this:
1. wages: $100,000
2. federal capital loss carryover from 2021: $-10,000
3. capital gains in 2022: $1,000
On 1040 I'll have line 1 (wages): $100,000, line 7 (capital gains): $-3,000, line 11 (AGI): $97,000.
On NC return D-400 I'll have line 6 (federal AGI): $97,000. I don't see anything in Schedule S regarding capital gains, so line D-400 lines 7 & 9 (additions/deductions from federal AGI) would be 0 resulting in $97,000 (- NC standard deduction) state taxable income. Where does the adjustment about ignoring carryover and applying only 2022 gains go on NC forms?
