I'm using TurboTax Home&Business and working on my Oklahoma return, though I think this question would apply to most other states... Full-time resident in OK. Income is from W-2, 1099-R, 1099-INT and DIV and stock brokerage transactions.
We sold a vacation property in ANOTHER STATE for a large capital gain. Anticipating this, we had our stock broker do some tax loss harvesting in our brokerage account to partially offset the capital gain on our federal return, which worked out as expected.
Working on the state return, one of the first questions asked is if there is income from another state that is not taxable in my home state (Oklahoma). Yes, it is this large capital gain on the property sale. Our Federal Schedule D is thus a mixture of short and long term gains and losses in the brokerage account and the gain on the property sale. On the state return, if I ignore the gain on the property, I am still left with a sizable capital loss from the stock harvesting which, along with other Oklahoma deductions and exemptions, zeroes out all my other income.
This doesn't seem right, because if there wasn't the gain on the property sale, then all those harvested losses would be limited to $3000? I'm at a loss on how to handle this. Any guidance is much appreciated.
Thanks
