Investment Property in Little River, SC

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.

County hospitality fee. Horry County charges businesses outside city limits a hospitality fee of 3 percent of gross proceeds from rental of transient accommodations, compared with 1.5 percent inside city limits. Rentals of 90 consecutive days or more at the same location to the same guest do not collect it, and if a property manager arranges the stays, make sure the manager is collecting and remitting it.

Everything else on the county's short-term rental chart. A Horry County business license, a South Carolina Department of Revenue sales tax number with the state sales, use, and accommodations tax returns, the county's hospitality and accommodations reporting form, and a personal property return for furnishings filed by April 30. Ask your CPA to set it up before your first booking.

Lenders require flood insurance on a federally backed loan for a building in a Special Flood Hazard Area, and the South Carolina Wind and Hail Underwriting Association is the market of last resort for wind and hail in the coastal territory; it notes that a wind claim is handled on an actual cash value basis if no flood policy is in force. 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. Call me with your budget and goal.