I am a NJ resident. I sold a rental property in OH. I filed both NJ resident state tax and OH non-resident state tax.
Q1: Is the capital gain associated with my OH rental property sale exempt from NJ state tax? I did report rental activities in my previous Federal, NJ, and OH tax filings.
Q2: The capital gain associated with my OH rental property sale is solely due to depreciation recapture (the OH rental property sale proceed net of sale expenses such as commissions is less than the original property purchase price). I also have a cumulative loss carried forward on this rental property, but when I use Turbo Tax to file NJ state tax return, the cumulative loss carried forward is not used to offset the capital gain associated with the OH rental property sale. Turbo Tax indicates the cumulative loss will be carried forward to 2019 even I sold OH rental property in 2018.
Your kind guidance is greatly appreciated!
