I'm a full time resident of NJ, and had a vacation home in NC. We sold it in 2007. I know I have to pay federal and NJ capital gains. Do I also have to file an NC return for the capital gains?

I heard if I pay NC taxes, I'll get a credit on my NJ taxes, but I want to know if I even need to. I never earned any rental income or any income of any kind in NC.

If you made a profit on the sale, then, yes, you have to file a NC tax return.