Ours is a Part-Year resident NC return. We were living abroad and had not filed a State return in several years. For a Part-Year resident return, we need to file D-400 Schedule PN to compute the Part-Year Resident Taxable Percentage.
Columna A on Schedule PN line 7, is $7,000 (NET federal capital gain after applying capital loss carryover). Column B is 22,000 which is indeed our 2023 gain (all NC source), before applying any federal capital loss carryovers from 2022. Federal Capital loss carryover from 2022 is not being applied to line 7 column B.
This affects the NC Part-Year Resident Taxable Percentage (line 24 on Schedule PN) which increases the amount of NC taxes we have to pay.
As you know, Sch PN identifies amounts of income from all sources (Column A) and amounts attributable to NC (Column B).
Line 7 is Capital Gain, and column A has the NET capital Gain reported on the federal Schedule D (gains minus federal capital loss carryovers).
From what I understand, NC does not follow federal rules on capital losses, and line 7 column B (amount attributable to NC), should be the 2023 capital gains disregarding the federal capital loss carryover.
Please advise, since
