Author Topic: Allocating Capital Loss Carryover Between States  (Read 360 times)


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Allocating Capital Loss Carryover Between States
« on: April 15, 2019, 06:49:51 PM »
I have $3,000 in capital loss carryover - how do I allocate it between two state tax returns? It was incurred in prior years, while I lived in State #1 for the entire year. In 2018, I only lived in State #1 for 5 months, before moving to State #2 on June 1.

Option 1:
Assign it all to State #1, since that was my residency status when the capital losses occurred.

Option 2:
Assign it proportionally based on how much time I spent in each state, so 5/12 to State #1, and 7/12 to State #2.

Is one option better than the other? I still have more carryover for 2019, and I wouldn't file a non-resident NYS tax return just for that, so maybe proportional makes sense?