Federal Capital Loss Carryover/Oregon Capital Gains

[roxieroo444]

I input my capital gains on my federal return but due to a capital loss carryover did not have to pay federal tax on the gains and am able to take the maximum $3,000 loss on my federal return. 

Since Oregon taxes all capital gains and the capital loss carryover was not from an Oregon source, it's my understanding I need to pay Oregon capital gains.  It is also my understanding that the information would flow through to the Oregon return from my federal return information but it's not there. 

Do I need to enter the information manually on Form 40 "Other Additions"?  If so, what code do I use?  I have already entered the $3,000 using code 161 for Non-resident capital loss carryovers.  This is my first year filing an Oregon return if that makes a difference.   

Thank you 

[JohnB5677]

Yes, you need to pay Oregon Capital Gain Tax.  You stated that this is the first year you are filing an Oregon tax return. If this is the case you will not be able to make any deduction in the state.

There are two situations where you can take a Carryover Loss in Oregon.

1. You were a resident of Oregon when the loss occurred.
2. The source of the loss was Oregon-based.

So, unless you can identify losses that were generated by Oregon companies you will not be able to take any carryover losses.

[roxieroo444]

Thank You John.  Can you please confirm that I will manually enter the capital gains and capital loss carryover as follows on the Turbo Tax Supporting Details for Other Additions Statement/Nonres Cap Loss Carryover as: 

2021 Capital Gains        $2,000

Capital Loss Carryover  $3,000

For a total Addition        $5,000

Which will flow through to Other Additions item 161

Which will flow through to Form OR-ASC Adjustments for Form OR-40

Which will flow through to Form OR-40 line 8  

I appreciate your help and expertise on this!

[JohnB5677]

I'm not quite sure of the question, but (on the Federal) if you had $2,000 of capital gain, you will use -$2,000  of the loss to offset that.  In addition,  If the remaining Capital loss carryover is greater than $3,000, you can also deduct that $3,000 from regular income.

Again, In Oregon you do not have a carryover, so you will be taxed on the $2,000 of Capital Gain.

[roxieroo444]

Thank you John for the additional comments.  I think Turbo Tax is Great and have been using it for years.   When I was a California resident, TT would walk me through the capital loss carryforward scenario.  I had to manually add back the capital loss carryforward ($3,000) for Oregon along with the capital gain and capital gain distributions that were offset on the federal return but had to be included on the Oregon return.  I double checked the Oregon return by running the numbers thru an Excel spreadsheet.  

If the TT Oregon state software could include a question section to address this type of situation i.e. "is the capital loss carryforward attributable to Oregon sources - yes or no?  Was the taxpayer an Oregon resident when the loss was incurred - yes or no?  Something along those lines would be very helpful.  

Can you forward this to the appropriate department?  Thanks Again!