Monthly Newsletter for September 2013

by in Newsletter on Aug. 26, 2013

ALERT:  Annual Minutes Requirement Statement Solicitation


The Secretary of State’s Office has become aware that an entity “Compliance Services,” has mailed solicitations titled “Annual Minutes Requirement Statement” to business entities in North Carolina.  These solicitations offer to process corporate meeting minutes on behalf of the corporation for a fee of $125.00.  Despite the implications contained in the solicitations, North Carolina business entities are not required by law to file corporate minutes with the North Carolina Secretary of State’s Office.  This document is not affiliated with our office or any other governmental Set agency.


Renting Your Vacation Home

A vacation home can be a house, apartment, condominium, mobile home or boat. If you own a vacation home that you rent to others, you generally must report the rental income on your federal income tax return. But you may not have to report that income if the rental period is short.

In most cases, you can deduct expenses of renting your property. Your deduction may be limited if you also use the home as a residence.

Here are some tips from the IRS about this type of rental property.

• You usually report rental income and deductible rental expenses on Schedule E, Supplemental Income and Loss.

You may also be subject to paying Net Investment Income Tax on your rental income.

• If you personally use your property and sometimes rent it to others, special rules apply. You must divide your expenses between the rental use and the personal use. The number of days used for each purpose determines how to divide your costs.

Report deductible expenses for personal use on Schedule A, Itemized Deductions. These may include costs such as mortgage interest, property taxes and casualty losses.

• If the property is “used as a home,” your rental expense deduction is limited. This means your deduction for rental expenses can’t be more than the rent you received.

• If the property is “used as a home” and you rent it out fewer than 15 days per year, you do not have to report the rental income.