Amends GS 105-153.5 to allow a deduction from income tax of up to $50,000 of net business income the taxpayer receives during the taxable year if the taxpayer is a small business, defined as a business whose annual receipts, combined with the annual receipts of all related persons, for the taxable year did not exceed $1 million. Provides that in the case of a married couple filing a joint return where both spouses receive or incur net business income, the maximum dollar amounts apply separately to each spouse's net business income, not to exceed a total of $100,000. Excludes from the term business income any income that is considered passive income under the Internal Revenue Code. Effective for taxable years beginning on or after January 1, 2019.
Bill H 277 (2019-2020)Summary date: Mar 5 2019 - View Summary