Modifying North Carolina tax law to align state deductions with federal 1031 exchange rules.

This bill modifies North Carolina's tax code to change how gains from 1031 exchanges are taxed. Specifically, it aligns state deductions with federal rules by allowing taxpayers to deduct non-like-kind property received in a 1031 exchange, up to the taxpayer's basis in the property sold. This change applies to taxable years beginning on or after January 1, 2025.

Modifying North Carolina tax law to align state deductions with federal 1031 exchange rules.

This bill modifies North Carolina's tax code to change how gains from 1031 exchanges are taxed. Specifically, it aligns state deductions with federal rules by allowing taxpayers to deduct non-like-kind property received in a 1031 exchange, up to the taxpayer's basis in the property sold. This change applies to taxable years beginning on or after January 1, 2025.