Tax Law Changes - North Carolina Department Of Revenue - 2012 Page 9
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41G.S. 105-134.6(b) – Other Deductions: This section was rewritten. Subsection title
“Deductions” was changed to “Other Deductions”. Deductions are allowed in this
subsection to the extent those items are included in the taxpayer‟s adjusted gross
income.
(Effective for taxable years beginning on or after January 1, 2012; HB 200, s. 31A.1.(c),
S.L. 11-145.)
G.S. 105-134.6(b)(22) – Business Income Deduction: House Bill 200 created this
new subdivision to allow a deduction of $50,000 for net business income the taxpayer
receives during the taxable year. The term “business income” does not include income
that is considered passive income under the Code. Senate Bill 267 rewrote this
subdivision to clarify that an amount not to exceed $50,000 of net business income the
taxpayer receives during the taxable year may be deducted. However, in the case of a
married couple filing a joint return where both spouses receive or incur net business
income, the maximum amount applies separately to each spouse‟s net business
income, not to exceed a total of $100,000.
(Effective for taxable years beginning on or after January 1, 2012; HB 200, s. 31A.1.(c),
S.L. 11-145.)
(Effective for taxable years beginning on or after January 1, 2012; SB 267, s. 12.(c),
S.L. 11-330.)
G.S. 105-134.6(c) – Additions: This section was rewritten to reflect the change to
make adjusted gross income the starting point for the computation of North Carolina
taxable income.
(Effective for taxable years beginning on or after January 1, 2012; HB 200, s. 31A.1.(c),
S.L. 11-145.)
G.S. 105-134.6(c)(3) – Addition for Taxes Claimed: This subsection was rewritten to
require an addition for qualified motor vehicle taxes claimed as an itemized deduction.
(Effective for taxable years beginning on or after January 1, 2012; SB 267, s. 12(d), S.L.
11-330.)
G.S. 105-134.6(c)(4) – Additional Standard Deduction: Repealed. The change to
adjusted gross income makes this statute irrelevant.
(Effective for taxable years beginning on or after January 1, 2012; HB 200, s. 31A.1.(c),
S.L. 11-145.)
G.S. 105-134.6(c)(4a) – Personal Exemption Adjustment: Repealed. The change to
adjusted gross income makes this statute irrelevant.
(Effective for taxable years beginning on or after January 1, 2012; HB 200, s. 31A.1.(c),
S.L. 11-145.)
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