PHOTO CONTRIBUTED
Top Producer
Sam Keziah (right) of Brunswick County Farm Bureau is honored
as one of the top 30 producing agents by William L. Pollard (left)
executive vice president and general manager of N.C. Farm
Bureau Mutual Insurance. Keziah was selected from more than
690 agents statewide based on sales and service records during
1993. The honor was announced at the annual sales conference in
Greensboro earlier this month.
Home-Office Deduction Can
Reduce Homeownership Costs
Anyone who maintains a quali
fied home office can deduct some of
the everyday costs associated with
owning a home.
The N.C. Association of Certified
Public Accountants points out that
while there are significant benefits
associated with working from a
home office, tax law is strict in this
area. To qualify for the home-office
deduction, you must be able to
prove that the portion of your home
designated as your office is used ex
clusively and on a regular basis, ei
ther as the principal location of your
business or as a place where you
meet or deal with patients, clients or
customers in the normal course of
your business.
For some years, there has been
confusion and conflicting tax court
decisions as to what constitutes a
business's principal location. How
ever, last year the Supreme Court
handed down a decision that should
help clarify the legal definition of a
"principal place of business."
The court case involved Nader E.
Soliman, a self-employed anesthesi
ologist who provided services to pa
tients at three hospitals for 30 to 35
hours per week. None of the hospi
tals provided him with an office for
conducting the administrative duties
essential to his practice.
Dr. Solimun deducted expenses in
connection with a spare bedroom in
his home that he used exclusively
and on a regular basis for maintain
ing patient records, billing, tele
phoning patients and colleagues,
surgeon correspondence and reading
medical journals. The Supreme
Court denied Dr. Soliman's home
office deduction after determining
that the anesthesiologist's home of
fice was not his principal place of
business. The court's decision was
based on its belief that treating pa
tients in hospitals was more impor
tant than the activities performed by
the anesthesiologist in his home of
fice and that he spent far more time
in the hospitals than in his home of
fice.
While the high court did not cre
ate a ciear-cut rule, it concluded that
in order to qualify as a taxpayer's
principal place of business, the
home office must meet two primary
conditions: It must be the place
where the taxpayer's most important
business is conducted and where he
or she spends a substantial number
of his or her working hours.
Self-employed workers and peo
ple with sideline businesses who
spend most of their work hours in
their home offices and people who
regularly see or meet with clients
and customers in their home offices
may still he eligible for the deduc
tion. Those who do some work at
home, but who generate most of
their income by performing their
services at other locations, no longer
qualify for the home-office deduc
tion.
Deductible Expenses
If your home office qualifies, you
may be entitled to deduct certain
costs associated with operating and
maintaining the part of the home
used for business. Direct expenses,
like the cost of supplies, profession
al fees, or advertising are deductible
in full. Your business deductions for
indirect expenses, such as real estate
taxes, mortgage interest, utility
costs, depreciation and home insur
ance premiums, are based on the
percentage of your home used for
the business.
Limit On Deductions
Keep in mind that there is a cap
on how much you can deduct for the
business use of your home. Your
home-office deduction cannot ex
ceed the net income derived from
the office activity. This means you
cannot use the cost of maintaining a
home office to create or increase a
tax loss from your business.
However, home office expenses
that you cannot deduct in the year
they are incurred can be carried over
to later tax years when you have ad
equate income to permit the deduc
tion.
Form 8829
The Internal Revenue Service
(IRS) now requires a taxpayer who
is claiming a home-office deduction
to file Form 8829, "Expenses for
Business Use of Your Home," to
clearly identify home-office deduc
tions.
Form 8829 is divided into sec
tions for computing space alloca
tion, reporting deductible expenses,
figuring depreciation, and carrying
over expenses not allowed because
of income limitations.
The IRS has indicated that be
cause of the wide range of circum
stances involving home offices, each
claim for home-office deductions
will be judged on its own merit. If
you plan to take a deduction for
your home office, CPAs recommend
that you be prepared to substantiate
your case by documenting working
hours and keeping good records.
1
BUSINESS BRIEFS
Brunswick Electric Receives
Safety Award
Brunswick Electric Membership
Corporation of Shallotte has re
ceived an award of excellence for its
overall safety accreditation program.
The award was presented at the
recent annual meeting of Carolina
F.lectric Cooperatives in Raleigh.
This is Brunswick EMC's fifth
consecutive accreditation. The Na
tional Rural Electric Cooperative
Association awards accreditations
buovd on u review of
safety efforts every three years after
the initial certificate is issued.
The program's purpose is to pro
mote awareness among employees
and tn recognize outstanding safety
records. It also helps co-ops qualify
for reduced insurance rates.
Co-ops are rated in 24 areas in
cluding on-site inspections, docu
mentation of accident investigation
and reporting procedures, employee
training activities, policies on the
use of protective equipment and
safety inspection of lines, poles and
underground facilities.
Brunswick EMC currently serves
nearly 50,000 customers in Bruns
wick, Columbus, Bladen and Rob
eson counties.
Top Seller
Bonnie Black, a sales associate
with ERA Callihan, Teal, Skelley
and Associates
in Calabash has
received nation
al recognitions
from Electronic
Realty Asso
ciates for top
sales perfor
mance during
1993.
With more
than $5 million BLACK
in residential sales volume last year.
Black ranked as one of the compa
ny's top producers among 24,000
ERA associates nationwide. The
award was announced at the 1994
ERA International Business
Conference, held earlier this month
in San Antonio, Texas.
PAC Endorses Redwine
Rep. David Redwine has been en
dorsed by the N.C. Academy of
Trial Lawyers Political Action Com
mittee for the 14th District N.C.
^ ;
*VS
House of Representatives election.
The announcement was made by
Shallotte attorney Roy D. Trest, a
member of the academy.
The academy's general counsel,
Mary Ann Tally, said the PAC does
not require a candidate to pass "any
litmus test" or support or oppose any
particular set of issues.
"All endorsements arc based on
candidates' records and their plat
forms" shi* said adding that the
group's primary concern is election
of those who support the rights of
trial lawyers' clients and preserving
access to a fair jury system.
Tho pap wgc formed jp. 1976 ;;"*J
is managed by a board of trustees.
Attends Course
Jody Clemmons of Brunswick
County is one
of 37 young to
bacco farmers
and farm sup
ply dealers who
attended a
Tobacco Short
Course con
ducted by the
N.C. Extension
Service recently
CLEMMONS jn Raleigh.
The group took an all-day bus trip
to visit the J.P. Taylor Stemmery in
Henderson and the Philip Morris
manufacturing and research facili
ties in Richmond, Va.
The course is designed to help
young farmers decrease production
costs while maintaining leaf quality.
Estey Re-Hired
Comprehensive Home Health
Care has recently re-hired Heather
Estey, R.N.
Estey and her husband Peter live
in Southport with their daughter. She
attended Central Maine Medical
Center School of Nursing in
Lewiston, Maine, and has been an
R.N. for four years.
New Jones Store
Tabor City-based Jones Stores has
announced the opening of a new
store in Southport.
Grand opening ceremonies were
held March 17.
The store is in the former Card
inal True Value building on South
port-Supply Road next to the
NationsBank under construction.
The company operates 40 stores
in the Carolinas and is celebrating
its 40th anniversary, according to
spokesman Mike Jones.
A* UP C
? www m?ma
Richard "Dickie" Warrick has
joined J&S Alarm Co. as vice presi
dent of coastal
operations in
the Brunswick,
New Hanover
and Horry
Countv areas.
r-/k
his wife Shirley
have lived on
Oak Island for
14 years. He is
WARRICK retired after 27
years with the U.S. Army Special
Forces and is current president of
the Special Forces Decades
Association.
He also is president of the Oak
Island Fishing Club, a member of
the Oak Island Elks Club, Moose
Club, VFW and the American
Legion and attends Oak Island
Presbyterian Church.
No More S&L
Security Savings and Loan
Association has adopted the name
Security Savings Bank, SSB.
President Albert G. Trunnell said
deposits will continue to be insured
by the Federal Deposit Insurance
Corporation, which will also be the
bank's primary regulator, along with
the State of North Carolina.
"SSB" stands for State Savings
Bank, denoting the shift from state
chartered mutual savings and loan
association to state-chartered bank.
Trunnell said the organization's
logo and signs will soon be changed,
adding, "Tbis is the biggest differ
ciitc iuui Out vu.itOiiierr, w?!! ot?
serve."
Security was founded in 1911 as
Southport Building and I.oan As
>? u ?.~ Co..
.tUVIUllUII. 11 UCV.UI 1IV* viuuuipvi 1 wJU ?
ings and Loan in 1 954; with county
wide expansion in 1%4, the name
was changed to Security Savings
and Loan.
Exceeds Goals
Sheila Morgan has been recog
nized by Sprint
Cellular for ex
ceeding all
sales goals and
objectives for
1993.
Morgan was
one of the top
producers for
Spring Cellular
nationwide, ac
MORGAN cording to a
company news release. She is repre
sentative for Brunswick and
Columbus counties.
Why wait for
your federal
income tax refund?
Kama~
IRefund
Available whether we prepare
your return or not
ITS FAST! ITS EASY!
H&R BLOCK
RESORT PLAZA. SUITE lO SHALLOTTE
Open 9 AM Until Weekdays, 9-5 Sal., 754-6067
MasterCard. Visa and Discover accepted In most area locations.
JACKSON NATIONAL LIFE
Certificates of Deposit (CDs) are renewing
nationally at an average rate of 3.5%.
Jackson National Life's New
Bonus MAX One
Tax-deferred Annuity
is crediting
8.85%
Current Interest!
The choice is yours.
(Check one)
A taxable A tax-deffered an
?
CD crediting nuity crediting
3.5% 8.85% (as of 1/3/94)
Call for the details!
Baker & Associates
Brokerage Services Jackson National Life
? Insurance Company
1-800-680-9996 Jackson National Life Insurance
2720 Oleander Dr. (.'ompnny of Michigan
WtuUly Ownni Sulisuliartn of PrutUrUuil
Wilmington, NO 2B403 CorportUton pic Luiuion, England
OI994 THC BnuNSWlCK BEACON Hum# Offtc? Lanaing Mtchif n
STAFF PHOTO BY SUSAN USHER
Chamber Boosts Library Move
A check for $1,000 from the South Brunswick Islands Chamber of
Commerce gave a boost to temporary relocation of the West
Brunswick Branch Library in Shallotte during renovation and ex
pansion of the existing Main Street site. The library will move later
this month down the street to Resort Plaza. Above, Chamber
President.Ioe Stanley presents the check to Sue McCann, treasurer
of the Friends of the Library.
ARE ALL YOUR RECEIPTS IN A PAPER BAG?
CALL MARCIA'S BUSINESS SERVICE
We will put them all on computer, balance your checkbook, itemize
your deductions, do your quarterly taxes and get you ready for your
accountant. Reasonable rates. Call 579-9474 TODAY.
Look No More.
Competitive Rates, Affordable
Mortgages At NationsBank.
As part of NationsBank Corporation, NationsBanc
Mortgage Corporation has the power to offer you
a competitive rate and flexible tenns that could improve
your financial situation and enhance your lifestyle.
So whether you're hunting for your first home or your
tenth, or just thinking of refinancing, look no more. Call
the professionals at NationsBank for service and support
throughout the mortgage process. We have a convenient
Sunset Beach office to serve you. Call today:
9
Tamala Grimes
Account Executive
Seaside Plaza Shopping Center
Highway 179/904 Intersection
Sunset Beach, NC
910-579-3550
NationsBank
NationsBanc Mortgage Corporation
NatuuisHdiu ..furtww ("twporation is a SatiansHank (brfxuutum
Company fu Equal Hu/min# Isndti ? /.Wi Xationsliank Corporation.