topic Question regarding capital loss deduction in State tax filing

Question regarding capital loss deduction

Bibina88 — Sun, 23 Mar 2025 02:45:45 GMT

Hi everyone,

I made 10k trading stocks in 2024 (Short-term).

On my Federal taxes, I also have -20k Capital Loss Carryover from prior years, so I end up filing -3k deduction for 2024

Now, if I am Resident of NY, should I also report -3k Capital loss on my State taxes, or should I report 10k Capital gain instead?

And similar question for the Resident of NJ. Should I report -3k Capital loss (same as Federal) or 10k Capital Gain?

Thanks!

Re: Question regarding capital loss deduction

KeshaH — Mon, 31 Mar 2025 22:56:46 GMT

If you're a full year resident of New York, you're going to report the $10,000 capital gain on your New York return and then apply your New York capital loss carryover to that gain, if any. If your New York capital loss carryover is the same as your federal capital loss carryover, you'd be able to utilize $13,000 and deduct $3,000 on your return.

If you weren't a resident of New Jersey, you wouldn't need to include any of the gain on your New Jersey return unless the assets you sold were New Jersey assets. If they were, you'd only report your New Jersey sales and New Jersey capital loss carryover to New Jersey.

Re: Question regarding capital loss deduction

Bibina88 — Tue, 01 Apr 2025 14:14:10 GMT

Hello!

I am actually resident of NJ, but working in NY.

As far as I know, for NJ, I am not able to apply prior year capital losses to the current year, so if I made 10k, I will have to report 10k capital gain on my NJ 1040

I am just not sure what to report on NY state non-resident tax form. Technically I earned money while working in NY.
Should I apply the same rule as Federal to my NY taxes ? (10k profit plus -20k loss carryover = -3k annual deduction),

or should I apply 10k profit instead ?

Thanks Again!!!

Re: Question regarding capital loss deduction

AmyC — Mon, 07 Apr 2025 16:47:20 GMT

As a nonresident of NY, only wages/ income sourced in NY are listed on the NY return. Your investments are related to your home life so that income will go on your NJ return.

Re: Question regarding capital loss deduction

Bibina88 — Mon, 07 Apr 2025 18:09:24 GMT

Thank You!