Capital Gains part-year resident split - federal capital gains is not equal to amount on state taxes

[someguy12345]

Hello,

I've moved to CO from VA in June 2021. I am pretty active (sadly not super successful...) on the stock market so I had multiple transactions, interests, dividends. By multiple I mean 130+. Due to the import function preparing the federal wasn't a big deal and my total cap gains profit (so basically few 1099-B) came to $2400. 

Since I read everywhere that I should allocate each profit/loss to VA/CO based on the date of the sale I went through ALL the transactions and split it as required. I expected the question in the state section of the taxes about the split and it indeed appeared. The problem is that the amount TT wants me to split is not $2400 (which is equal both 1099-Bs I got and also the TT federal summary where I am supposed to input those) but $2467 and I have no clue where this extra $67 comes from. In the review section of the federal, at the very end the cap gains are also $2467 without explanation where this extra $67 comes from.

So my questions:

1. If federal section shows $2400 as my total cap gain profit why state (and federal summary) could show $2467? Is there anything beyond 1099-B profits which may be added?

2. If I cannot figure out what to do with the extra $67 (how to state-split it) what is my best option?

a) assign it to one state? which?

b) split it based on time?

c) split it based on the $2400 split proportions (so that this $67 is split with same proportion as the $2400 which I can exactly determine).

3. In general is it acceptable to just split unearned without going through this nightmare of considering each transaction? How accurate it needs to be? In case of dividends it gets super tricky when you consider foreign taxes etc.

[Mike9241]

did you have capital gain dividends?  box 2a of 1099-Div

[someguy12345]

Thanks Mike for your answer.

I've just went through everything to check it. The answer is no. No 2a on any 1099-DIV.

I did get some Non-Dividend distributions (3), Section 199A dividends and paid some foreign tax but the numbers do not seem add up  to $67 in any combination :( 

[someguy12345]

Actually Mike I've found 2a on my wife's 1099-DIV (unexpected). It's 69.67. With the total 1099-B capital gains of 2399.22 it's kinda close to 2467 but not quite. There is also foreign tax paid on the same 1099-DIV of 1.01.

The only explanation would be round down to 2399 + round down to 69  - the foreign tax of 1 = 2367 but it's a bit creative, isn't it...

[DianeW777]

No, it makes sense.  The states do not always treat the qualifying or capital gain dividends the same way as the federal.  You should make your split based on your residency periods for each state using the number that carried over.

Yes, it's acceptable to just split unearned without going through this nightmare of considering each transaction? You can use the totals earned by the period or if you held it all year, you can divide by 12 and then multiply by the months in each state (assuming it's earned relatively even throughout the year).

[someguy12345]

Thank you! 

Maybe next time I will do the simplified split. This time I've overanalyzed everything and went through all relevant transactions (probably like 300 of them) 😄