@NCperson I was referencing what I believe (and I am not in NC so I would defer to you) is that if there is a net capital loss which is carried over to the following year on the federal return, that amount of carry over loss is added to NC income the following year rather than being a deduction as is true for the federal return. See item 5.
Adjustments to federal taxable income in determining State net income.
(a) The net income:
following additions to federal taxable income shall be made in determining State
G.S. 105-130.5
Page 1
(1) Taxes based on or measured by net income by whatever name called and excess profits taxes.
(2) Interest paid in connection with income exempt from taxation under this Part.
(3) The contributions deduction allowed by the Code.
(4) Interest income earned on bonds and other obligations of other states or their
political subdivisions, less allowable amortization on any bond acquired on or
after January 1, 1963.
(5) The amount by which gains have been offset by the capital loss carryover
allowed under the Code. All gains recognized on the sale or other disposition of assets must be included in determining State net income or loss in the year of disposition.
