You are right but I guess I didn't phrase the question correctly. I wanted to know about Schedule PN Column A and Column B for part-year residents.
I believe I got the explanation I was looking for and I am sharing it with you all:
For North Carolina individual income taxes, federal capital loss carryovers are not recognized. You should include all capital losses in the year of disposition. Therefore, you don't need to adjust Column A or Column B on Schedule PN. Column A reflects total income including federal capital loss carryovers, while Column B includes only North Carolina-sourced income regardless of the Federal Capital Loss carryover.
