Tax Codes are Taxing

What Changes?One of the changes in North Carolina taxes for 2016 is:

“Effective for tax years beginning on or after January 1, 2016, the corporate income tax rate decreases from 5.0% to 4.0% and the deduction of related party interest expenses is limited, with certain exceptions. The state will phase-in a single sales factor in the 2016 and 2017 tax years, with a 100% sales factor imposed in the 2018 tax year. Finally, certain taxpayers will have to file, by the original due date of their 2015 return, an information report calculating their sales factor using a market-based methodology.”

Sounds like good news but what are related party interest expenses, the certain exceptions, who are certain taxpayers and what is the market-based methodology?

When most of us read about changes to the tax code what may seem somewhat straight-forward, on further examination, is not. This is one reason a professional tax preparer is necessary. You need to make sure you pay all the taxes you owe but not one penny more. To accomplish this, your tax return has to be done carefully by someone who understands the latest changes.

You can trust Les Merritt who is not only a CPA but also designated as a Dave Ramsey Endorsed Local Provider (ELP). A ELP is not an easy designation to earn. Dave Ramsey only endorses the most skilled and caring professionals and then they are held to a higher standard of excellence.

A 45-person team interviewed Les several times and once he was endorsed the team provides support to make sure he offers the same advice Dave would give. Like other ELPs, Les is evaluated on his performance monthly and clients have a voice in the evaluation.

When you need tax advice, Les Merritt is where to go in the Carolinas. You can set an appointment with Les by calling (919) 269-8553.

 

 

Source: http://www.pwc.com/us/en/state-local-tax/newsletters/salt-insights/north-carolina-enacts-corporate-income-tax-and-other-tax-changes.html

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