@cdmason1964 @DoninGA
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I had never dealt with that before, so I tried it out on a home sale gain, for living in a home 22 of 24 month minimum.
From what I see, NC starts with the Federal AGI as the starting point for the NC tax return....so IF the Federal form had a partial exemption for having lived in the home 22mo (I used having to move due to a job more than 50 miles away)....then whatever is exempted on the Federal forms is automatically considered the same in the NC tax return. No further adjustment is needed when working in the NC tax forms.
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My test was a tax return with a $240k gain, 22mo lived & owned....and the Feds only taxed ~$11k+ of the gain. ( I had roughly figured it should be ~$20k taxed, but I'm not sure what miniscule details of dates & months are involved )
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
