Can I OFFSET/avoid the NC (NC DOR) tax on capital gains, if I ALSO cash out stocks with an equal (negative) amount in losses, to the state? Is there a limit on losses?

[Bsch4477]

@NCperson I was referencing what I believe (and I am not in NC so I would defer to you) is that if there is a net capital loss which is carried over to the following year on the federal return, that amount of carry over loss is added to NC income the following year rather than being a deduction as is true for the federal return. See item 5. 

Adjustments to federal taxable income in determining State net income.
(a) The net income:
following additions to federal taxable income shall be made in determining State
G.S. 105-130.5
Page 1
(1) Taxes based on or measured by net income by whatever name called and excess profits taxes.
(2) Interest paid in connection with income exempt from taxation under this Part.
(3) The contributions deduction allowed by the Code.
(4) Interest income earned on bonds and other obligations of other states or their
political subdivisions, less allowable amortization on any bond acquired on or
after January 1, 1963.
(5) The amount by which gains have been offset by the capital loss carryover
allowed under the Code. All gains recognized on the sale or other disposition of assets must be included in determining State net income or loss in the year of disposition.

[NCperson]

@Bsch4477 - I suspect, but not 100% confident, that relates to corproate income tax; not personal incoem tax. That paragraph talks about 'net income' and that is not an expression used on an NC personal tax return. 

I can tell you that the NC tax return simply begins with Federal AGI (LIne 11) with very, very few adjustments that either add or subtract from AGI.  The typical reductions are taxable portion of SS, certain public pensions, military pensions and interest on federal obligations , which are all not taxed in NC.  The typical additions are debt cancellation on student loans (a variance through 2025) and personal residences, which are taxable in NC even though they are not taxable on the federal return. 

There is no adjustment for tax loss carryforwards. 

that is really it; the NC return is quite simple - with one tax bracket: - it's a flat tax (4.75% in 2023) after a standard deduction and child deduction.