North Carolina Non Resident Standard vs Itemized Deductions

[srisri24]

Hi,

I am a non resident and have rental properties in NC and that is my only source of income in NC (and depreciation amounts are higher than the rents received), In the prior year NC state return, turbotax marked the return as 'Itemized', but, it is marked as Standard deduction in the current year's return. Turbotax does not seem to provide explanation or comparison of standard vs Itemized at state level, how can I find out what caused it to switch to standard deduction and if that has any implication on rental property depreciation losses being carried over from year to year.

Thanks

[ErnieS0]

TurboTax automatically gives you the better of the North Carolina itemized or standard deduction. There is no option to switch, as there are in some other states. 

North Carolina increased the standard deduction in 2022, which may be the reason for the change. Someone would have to see your returns to provide an explanation.

As for the implication on your NOL carryforward, again, someone would have to look at your returns to explain that to you since TurboTax does not automatically calculate an NOL.

You can use Form NC-NOL.

Please feel free to reach out to TurboTax Community if you need additional help or click here for information on Turbo Tax Support. You can connect with a Live Agent over the phone and share your screen.

[srisri24]

thanks, do I have to file any forms via mail as you mentioned Turbo Tax does not automatically calculate NOL? also, is the rental property depreciation also considered NOL and can be used in the same form linked above?

[AliciaP1]

Yes, the depreciation expense is what is creating the Net Operating Loss that you will need to calculate on the form from the link ErnieS0 provided.  You will need to mail your NC tax return with the NC NOL form as well.

@srisri24