Sale of principal residence in North Carolina

[ttbtaxes]

Are there any tax preparers in NC who know whether the NC rules mirror the Federal ones? Client sold his principal residence and meets all the criteria to exclude the gain under Section 121. Never rented.

I looked at NC and couldn't find anything different but wanted to see if someone experienced in NC tax law could confirm whether it follows the Federal law and the gain would thus be excluded in NC as well.

[Rapid Robert]

If you subscribe to TheTaxBook weblibrary, you have the info at your fingertips. According to the NC chapter, NC starts with federal AGI and has a short list of addbacks and deductions. Sec 121 exclusion does not appear on the list of addbacks. The only potential issue might be if the basis of the property is different for NC than federal, but that doesn't seem likely.

[ttbtaxes]

Thanks Robert. Some states, such as NY, provide a search function where you can choose from advisor opinion, memos, notices, and more.

I'll have to look into TheTaxBook. Does it provide access to tax law or regulations or is it their interpretation?

[Rapid Robert]

. Does it provide access to tax law or regulations or is it their interpretation?

I wouldn't consider it an "interpretation", more like a summary. For backup, you could simply review the basic NC tax form instructions, which I believe are linked or referenced by TTB. It is not necessar to read the actual tax law and regs in order to prepare a simple state tax return, I'm sure millions prepare their NC taxes without ever doing so. Also, your tax software, especially if you are one of those who use Drake software, given that Drake is based in NC, should automatically handle a state-only adjustment such as this, if there were one.

You seem to be overthinking this. Is there some reason why such a long-standing and staid provision in the tax code, to which I would guess most states conform, is causing you such uncertainty? (most states have either static or rolling conformity to federal tax laws as the starting point for state taxes)

[TAXNJ]

Thanks Robert. Some states, such as NY, provide a search function where you can choose from advisor opinion, memos, notices, and more.

I'll have to look into TheTaxBook. Does it provide access to tax law or regulations or is it their interpretation?

https://www.thetaxbook.com