Does "main home sale gain exclusion" apply to Alabama income tax?

[AlanT]

 Alabama law is the same as federal law in this area, the treatment of 1998 Alabama tax returns, and forward, will be the same as for your federal return. 

[Cooter]

 The net amount of my personal home sale gain is included in my Alabama taxable income total. I lived in this house for over 2 years. How do I remove this?

[ErnieS0 · Accepted solution]

Alabama follows federal law for the home sale exclusion. TurboTax will not include home sale gain on the state return unless it’s included on the federal return.

Check your federal. If your gain is included on federal Forms 8949 and Schedule D, then TurboTax will carry the gain to Alabama.

There is no way to separately exclude home sale gain from Alabama if it’s taxed by the IRS.

To qualify for the exclusion, you have to have owned and used your home as your main home for a period aggregating at least two years out of the five years prior to its date of sale. It’s not enough to just live there.

See: Topic No. 701 Sale of Your Home.

@Cooter