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? What is considered to be residential property for purposes of the FONCE exemption? Do gains from the sale of real or tangible personal property qualify as passive investment income? 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?