My client qualifies for IRS Sec 121 Home Sale Gain Exclusion but I can't tell if this rule pertains to NC income taxes. Given that this is incredibly common, you would think NC DOR would spell it out in plain English but I can't find it anywhere. They did not receive a 1099-S.
I didn't input the sale of the home on the Federal because I know that it qualifies as a home sale gain exclusion and no 1099-S. Furthermore, this is the only thing that they could potentially need to file a NC return for. They did not reside there nor earn any income there in 2020. The house was vacant for all of 2020.
Id enter it on federal anyhow, just for record keeping purposes if nothing else, and you never know when a 1099S actually DID get issued, and your client just never received it.
