lozzli
New Member

How do I keep TurboTax from applying my Fed Capital Loss Carryforward to my AZ state return? AZ does not allow this if loss is from living in another state.

I incurred a capital loss in another state before I moved to AZ.  AZ does not permit the taxpayer to use a capital loss carryover incurred from non-Arizona sources while the taxpayer was an AZ nonresident.  So you lose the whole carryover for state tax purposes.  (See AZ ITR 13-6.) 

But TurboTax doesn't seem to know about this rule.  My only option appears to be to override all the relevant fields on AZ-140 and on the Worksheet for Net Long-Term Capital Gain Subtraction for Assets Acquired After December 31, 2011.  That's tedious and error-prone.  Ideas?