treatment of long term capital loss on K-1 on state return

[tax1111]

There is about 180k capital loss on a partnership k1 and taxpayer is NJ resident and has 700k capital gain from other sources.
If I input the capital loss in 9a of federal k1 screen of tax software, the amount flows to NJ return as a NJ k-1's line 1 item which is general business income/loss and can not offset other capital gains. That does not sound right to me.
Does anyone have experience on how to deal with this?
Can I not input on K-1 but rather create a transaction on 8949 form to reflect the 180k loss there which will flow to NJ return as capital loss?
Thank you!

[jklcpa]

Did the client receive a NJK-1 from the partnership?  If not, if you complete the Partner's Reconciling Worksheet A?

NJ doesn't split the different types of partnership into its various components like the Federal return does.  If you look at the reconciling worksheet, you'll see that basically all the items on the K-1 are kept in the category of partnership income or loss, so it would be wrong for you to enter that loss directly on D/8949. 

This pdf is from the NJ Dept of Revenue's site that should explain this more fully:

git9p.pdf

[tax1111]

27 minutes ago, jklcpa said:

Did the client receive a NJK-1 from the partnership?  If not, if you complete the Partner's Reconciling Worksheet A?

NJ doesn't split the different types of partnership into its various components like the Federal return does.  If you look at the reconciling worksheet, you'll see that basically all the items on the K-1 are kept in the category of partnership income or loss, so it would be wrong for you to enter that loss directly on D/8949. 

This pdf is from the NJ Dept of Revenue's site that should explain this more fully:

git9p.pdf

This is really helpful! Thanks so much! The partnership didn't provide NJK1.