How does north carolina treats federal capital loss carryovers?

Forum|Forum|1 year ago
May 25, 2024
2 replies
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I moved to North Carolina in 2023 and have $22,000 in capital gain. On my federal return, I have capital loss carryover from 2022 for the amount of $13,000. My federal taxable capital gain is $7,000. Can I also apply the capital loss carryover to my NC return?

fanfare

Employee

The software will apply carryovers, if allowed by your state.

@amecal

fanfare

Employee

If you moved to NC in 2023, it would seem you have no state of NC carryovers, regardless.

Caution: I'm no NC state tax expert.

NCPERSON1

NC calculates its tax based on federal Form 1040 Line 11..... so as you apply the carryover on your federal taxes, it has the same affect on the NC taxes - there is nothing special you have to do for NC.

you are only paying taxes in NC on your capital gains, which are part of Line 11 already

amecalAuthor

Thank you, I understand that part,

but since we are part-year residents, in the NC return D-400 Sch PN, line 7, column B shows only the 2023 gain disregarding the loss carryover. Federal NET capital gain is 7,000 and amount attributable to NC is 22,000.

This causes line 24 (Part-year residents and nonresident taxable percentage) to be greater than 1, and therefore NC increases.

amecalAuthor

at the end of my message I meant to say that NC taxable amount increases as the percentage is greater than 1. Otherwise the percentage should be less than one because we have wages not attributable to NC