My wife and I been living together in Missouri since marriage. This year, my wife took a 90 day travel contract in California where she worked and rented a house for 90 days. I believe this makes both of us nonresidents all year long as she was there only for a limited time and for a specific purpose.
We have a federal return, a MO state return, and are working to file our CA nonresident state return. My question largely is just around the California Capital Loss Carryforward. We have $29k in capital losses on our federal return to carry forward from a prior year - can that go towards CA Capital Loss Carryforward to offset ordinary income? We can use it for federal and for Missouri, but It was not a loss related to California or income/loss from California assets, so I’m unsure if as nonresidents we should offset ordinary income by the $3k from that Carryforward.
We had approx 30k in CA income (just her job) and about 350k in total. My question ultimately becomes, we are taxed on that full 30k or can we offset it by the maximum allowance of 3k via the Carryforward?
