We would like to remind you about the NC business income deduction available for years beginning after 12.31.2011 on personal returns. The new law allows a deduction from federal adjusted gross income, as reported on the NC return, for net non-passive business income of up to $50,000. For a joint return the deduction applies to both spouses if each has eligible net business income; therefore, the combined deduction could be $100,000.
For businesses that are held equally, this means that for each owner to fully benefit the net income for the year reported on the business return would need to be $50,000 times the number of owners.
If you would like more information regarding this, please contact our office.