No, do not use other income. Other income is line 11 of the Non resident allocation percentage section of form 763. Line 6 is for Capital gains. TurboTax should have automatically filled line 6, column A with (-)$3,000 your net allowable capital loss on the federal return. In the interview it will give you a screen to enter the VA amount (+$100,000 in your case).
But, you say "my house" and "home sale". Was this your primary residence? If so, why are you not claiming the home sale exclusion on the federal return? If you do, the 0 capital gain transfers to the VA return and the $100K isn't taxed.
