Some small business owners (sole proprietors filing Sch. C and S Corp officers who actively participate) will be able to deduct the first $50,000 in net business income on their 2012 NC tax returns. This offers a business owner the chance to avoid paying taxes on up to $50,000 to the state of NC. This is a very generous tax benefit being offered to business owners, presumably to help stimulate hiring and business activity in the state. This does not apply to passive rental income or C Corporation income.
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The content on this blog (www.acollinscpa.blogspot.com) is my personal opinion based on my study and understanding of tax laws, policies and regulations. It’s provided for your private, noncommercial, educational and informational purposes only. It’s not a recommendation or endorsement of any company or product. It should not be relied upon as specific tax advice for your personal situation. I strongly suggest that when it comes to filing your taxes, you get additional, professional guidance from individuals who are familiar with your specific circumstances. Those who choose to rely solely upon the information on this site do so at their own risk and peril, and cannot hold the author liable in any form or fashion.
IRS CIRCULAR 230 DISCLOSURE REQUIREMENT: IRS Circular 230 requires us to notify you that any tax advice contained in this communication is not intended or written to be used, and cannot be used, by any person for the purpose of avoiding tax penalties that may be imposed by law.
