A client is a full-time resident of NC, but sold some property in SC and will need to report the taxable gain as SC non-resident income. There is no other SC income, and no other 2022 Schedule D transactions.
(Using round numbers for this example) -- The taxable gain on the sale is $50k. Client has unused LTCG carryover of $10k, leaving a NET LTCG of $40k as shown on the Schedule D total.
The problem is when SC/federal and SC/NC tax numbers are calculated, instead of the actual $50k gain on the property sale the net gain of $40k is appearing.
Is it possible to net out a LTCG carryover when considering "foreign state income" for non-resident income and/or for a foreign state tax credit?? What would have happened had there been other Sch D (taxable to IRS/NC but not to SC) activities?
--->>> For clarification, I am referring to the entries on line 7 of the SC Form NR and to a lesser extent to the related information on line 2 of the NC Form D-400TC.
Thanks in advance for any guidance!
FE
(Using round numbers for this example) -- The taxable gain on the sale is $50k. Client has unused LTCG carryover of $10k, leaving a NET LTCG of $40k as shown on the Schedule D total.
The problem is when SC/federal and SC/NC tax numbers are calculated, instead of the actual $50k gain on the property sale the net gain of $40k is appearing.
Is it possible to net out a LTCG carryover when considering "foreign state income" for non-resident income and/or for a foreign state tax credit?? What would have happened had there been other Sch D (taxable to IRS/NC but not to SC) activities?
--->>> For clarification, I am referring to the entries on line 7 of the SC Form NR and to a lesser extent to the related information on line 2 of the NC Form D-400TC.
Thanks in advance for any guidance!
FE
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