@cdmason1964
the NC tax return begins with the Adjusted gross income (Line 11) of the federal return. If you didn't have to report the gain on the federal return, then it is automatically eliminated from the NC return (because it was eliminated from Line 11 of the Federal Return).
NC doesn't have the concept of 'capital gains' - if that is what you mean. All income is taxed at the same rate.
oops, just saw @SteamTrain response. I concur.
