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RiverClone
Returning Member

Can Federal Cap Gain Carryover Loss also translate to non resident state where condo is located?

Resident of Iowa. Had rental condo in Nebraska. Had substantial gain on sale of condo due to a 1031 purchase years ago. Had built up substantial Capital Gain loss carryover on Federal which offset the cap gain tax. Ready to file my non-resident Nebraska as well as resident Iowa returns. Can the cap gain carryover loss work in non resident state (Nebraska) where the condo is located. My turbo tax is treating it as an offset as it  did the Federal Return, but I have gotten conflicting information on that. When i filed extensions, I overpaid an estimate to cover it to be safe, and even if I owe, I will have a refund. However, I am over the due date on the Nebraska and hope I can get advice on that. Thank you. 

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4 Replies
RiverClone
Returning Member

Can Federal Cap Gain Carryover Loss also translate to non resident state where condo is located?

PS. Forgot to mention. To clarify the question. I have been told that I would only be able to use the carryover loss on a state return if the condo had been in my home state and not a non-resident state. But Turbo Tax is carrying the loss carryover to Nebraska also. Thank you. 

Can Federal Cap Gain Carryover Loss also translate to non resident state where condo is located?


@RiverClone wrote:

.....Turbo Tax is carrying the loss carryover to Nebraska also. 


That is not, in the least, unusual with respect to non-resident states in TurboTax. 

 

You will most likely have to make a manual adjustment, which should be a simple matter if you are using a desktop version of TurboTax.

RiverClone
Returning Member

Can Federal Cap Gain Carryover Loss also translate to non resident state where condo is located?

Thank you, I will look at that.

Can Federal Cap Gain Carryover Loss also translate to non resident state where condo is located?

I would also recommend you print out the Nebraska return and review Schedule III and the respective instructions.  Schedule III is key for getting an accurate Nebraska tax computation.

 

https://revenue.nebraska.gov/sites/revenue.nebraska.gov/files/doc/tax-forms/2020/f_1040n_schs.pdf

 

*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.

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