That’s right! If you can afford to hold off until the beginning of 2012 you may have additional North Carolina tax savings if you are a cash-basis taxpayer. Why you ask? Our North Carolina legislators were feeling particularly generous to North Carolina small business owners. As such, effective January 1, 2012, there is a $50,000 deduction of net business income for taxpayers with non-passive income. So in other words, you may be exempt from North Carolina income tax on your first $50,000 of net business income.
More is to come on how to claim this credit in the New Year. In the meantime, you may want to learn about 2011 federal tax law changes for individuals on the Simply Taxes, LLC website.
The information contained within this article is for general guidance only. As such, it should not be used as a substitute for consulting with professional accounting, tax, legal or other competent advisers.