What is taxable is the gain on the sale of home. Generally, the gain is difference between the sales price and your basis (original cost increased by any improvements over the years and if a rental/business property reduced by any depreciation that could have been taken over the years) minus any sales expenses.
If you owned and lived in the property for at least 24 months of the last 5 years leading up to the sale date, up to $250,000 of gain ($500,000 if married filing jointly and your spouse also lived in/owned the property) can be excluded from taxable income.
Assuming the home was a primary residence enter in the "Wages & Income" section using the "Less Common Income" "Sale of Home" topic. Both information for the gain and the exclusion are in this topic.
Whatever gain that is not excluded will be transferred to and taxed by VA and NC, but you can claim a credit on your NC return for taxes paid to another state to mitigate the double taxation.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
