I have a client who is a resident of NC. She is the sole owner of an NC based S corp that has earnings in several states. I have completed the S corp returns.
Is there an adjustment to be made on the NC individual return if the NC K-1 is different than the federal K-1 (the federal K-1 showed a loss of about $10,000 whereas the NC K-1 only showed losses of about $7000 due to allocation to other states). She is not filing any other personal state returns.
I've gone through the instructions and don't see any mention of it...I'd as soon take the losses of $10,000 but I'm not sure that is correct....
Update: I have realized that the difference is not state allocations but a capital gain that does not flow through to the NC K-1 is this correct? Should the capital gain not show up on the NC k-1?
Is there an adjustment to be made on the NC individual return if the NC K-1 is different than the federal K-1 (the federal K-1 showed a loss of about $10,000 whereas the NC K-1 only showed losses of about $7000 due to allocation to other states). She is not filing any other personal state returns.
I've gone through the instructions and don't see any mention of it...I'd as soon take the losses of $10,000 but I'm not sure that is correct....
Update: I have realized that the difference is not state allocations but a capital gain that does not flow through to the NC K-1 is this correct? Should the capital gain not show up on the NC k-1?
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