capital gains on a farm sale in Indiana

[hancfam2]

I reside in Virginia but sold an inherited property in in Indiana during 2023. I put it in turbo tax as a capital gain and it was reduced by some carryover losses from previous years. This amount was added to my adjusted gross income for 2023.  This carry over loss was not from Indiana income but Turbo Tax is using the reduced income  for the Indiana taxes. is that correct for Indiana?  turbo tax has not reduced the capital gains in VA for the sale in Indiana.  do i need to manually input the reduction?

i did state the sale was in Indiana in the capital gains section.

Thanks!

[MarilynG1 · Accepted solution]

Yes, that seems correct, since you report the Capital Gains in Indiana as a Non-Resident Investment Sale.  Here's How to Enter Sale of Second Home, Inherited Home or Land. 

Your carryover loss reduced the long-term capital gain on your Federal return, which in turn is reported to Indiana.  If you had other long-term capital gains/losses besides the sale of the Indiana property, you may need to adjust the IN capital gains amount to reflect that in the state interview.

Here's some info on How to File a Non-Resident State Return and also from Indiana Dept. of Revenue.

[hancfam2]

Thanks! i upped the capital gains on the Indiana taxes where the sale occurred. For Virginia it is still using the capital gains from the federal form but has reduced my tax burden by the amount of taxes paid in Indiana. is there a way to adjust the capital gains in Virginia or is this the best i can do for now?