Investment Property in Brunswick County, NC

This page is general information, not legal, tax, insurance, or investment advice, and I do not tell anyone whether a property will make money. Rental rules, tax law, and insurance change, so please confirm what applies to you with your CPA, your attorney, your insurance agent, and your lender. I am a real estate professional, and my part is finding properties, pulling the facts, and handling the purchase.

Brunswick County's 1 percent. Since January 1, 1998, the county has levied a 1 percent room occupancy tax on accommodations subject to sales tax because they are rented for less than 15 days. The county's fact sheet says stays of 90 consecutive days or longer are exempt, and that in Sunset Beach, Ocean Isle Beach, Caswell Beach, and Holden Beach the 1 percent is remitted directly to the town. Returns are due by the 15th of the following month, even when no tax is due.

Oak Island's 5 percent. The Town of Oak Island levies a 5 percent accommodations tax on rentals to the same person for less than 90 continuous days, made up of a 3 percent tourism tax and a 2 percent beach protection and renourishment tax. Reports and payment are due by the 20th of the following month, and a rental agency handling the property files them. Ask a management company which taxes and reports apply on the exact street before you buy.

On a $600,000 rental, Brunswick County's 2026 table works out to about $2,832 a year in Ocean Isle Beach at 0.472 per $100, $2,892 in Holden Beach at 0.482, $3,192 in Caswell Beach at 0.532, and $3,252 on Oak Island at 0.542, before any district fees, and every value resets in the January 1, 2027 revaluation. Lenders require flood insurance on a federally backed loan for a building in a Special Flood Hazard Area, and wind coverage may come through the North Carolina Insurance Underwriting Association in the eligible coastal counties.

The IRS treats advance rent as income when you receive it, and personal use beyond the greater of 14 days or 10 percent of the days rented at a fair price limits your deductions. For a Section 1031 exchange, identify the replacement within 45 days of transferring the property you give up and receive it within 180 days or by your tax return due date with extensions, whichever comes first. My investment property page has more, and my Brunswick County guide covers the islands. Call me with your budget and goal.