Announcement

Collapse
No announcement yet.

SC pros - Question on reporting non-resident income

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    SC pros - Question on reporting non-resident income

    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

    #2
    I was hoping someone knew the answer.
    For now, a protected number ("40k" and not "50k") is being entered on Line 7, Column A of SC Form NR.

    Below is from the SCDOR instructions for Form NR:

    Line 7 and Line 8: Capital gain or loss and other gains or losses

    Include in Column B gains or losses from:
    ● the sale of real property (land or buildings) located in South Carolina
    ● stocks or bonds sold while a resident of South Carolina

    Any gain or loss reported in Column B must be supported by the appropriate federal schedules showing the location of the
    business or property.


    Comment


      #3
      For those who might care:

      The software provider has provided a reliable answer.
      On South Carolina Form NR, the full Schedule D net capital gain (including the long-term non-SC carryover) goes to Column A, line 7,
      The actual capital gain from the sale of the South Carolina property goes to Column B, line 7. The federal long-term capital gain amount is irrelevant to that number.
      It IS acceptable to SCDOR to have a larger number in Column B than in Column A, if the facts support it.

      Now you know!

      FE

      Comment

      Working...
      X