Thanks for the answer @Carl, sorry but I still have two questions.
1. I started a blank tax return. And only entered a fake 10M rental income with a fake NC property to make sure it is not a loss. And it turned out I owe CA tax of 1.3M but owe NC 0 . Is this expected? Shouldn't I owe tax for both NC and CA (primarily in NC and CA take the rest since CA has higher tax bracket)? Or CA go first since it is the resident state. Or is there any step that I did was incorrect?
2. Looks like NC forms does not have any information about rental loss. It is only in the federal tax schedule E and CA schedule E worksheets. I suppose one day when I sell the property and get a gain, I just need to enter the carryover loss from the federal return to offset the gain.
Thanks!
