Where in Tennessee law can the FONCE exemption be found? Please see Tenn. Code. Ann. Section 67-4-2008(a)(11). September 09, 2015 19:23 Related articles What are the qualifications for the FONCE exemption? For the purposes of the FONCE exemption, what relationships are considered family-members? Do gains from the sale of real or tangible personal property qualify as passive investment income? What is considered to be residential property for purposes of the FONCE exemption? What if I received a Disclosure of Activity form for an entity that is not a FONCE, but is otherwise exempt from franchise and excise tax?