Income Tax Return Instructions - State Of South Carolina (Page 10 of 14) in pdf

South Carolina net operating loss if you are claiming a

Attach a copy of the letter you received at the time of

net operating loss prior to January 1, 1985, under South

adoption which certified the person as a "special

Carolina prior law. In no event is the same loss to be

needs child".

deducted

than

once.

(Attach

your

own

worksheet.) No carryback losses are allowed.

A "special needs child" means a person under the age of

18 at the time of adoption, who is a dependent of a public

South Carolina and federal depreciation expenses are

or private non-profit adoption agency, is legally free for

the same. Any asset with a different basis because of

adoption and has been determined by the agency to

differences in state and federal law prior to conformity,

have specific conditions.

January 1, 1985, shall be adjusted at the end of the

federal depreciation as follows: personal property must

Depending upon how a particular item was reported

be depreciated by the straight line method at the rate of

or deducted, the following items may be an addition

50 percent per year and real property must be

or subtraction.

depreciated by the straight line method at the rate of 20

percent per year.

A change in accounting method to conform in the same

Capital expenses amortized under federal statutes will

manner and same amount as federal. At the end of the

be the same for state purposes. At the end of the federal

federal adjustment, any balance will continue until fully

amortization, the balance of capital expense amortized

adjusted. This may be an addition or subtraction.

will continue until fully amortized for state purposes. The

amortized amount is a subtraction from your income.

The installment method of reporting is to be adjusted if

the entire sale has been reported for state purposes or to

Legislators within a 50-mile radius of the State House

continue on an installment basis if the entire sale has

are allowed to subtract travel expenses.

been reported for federal purposes. This may be an

Depreciable assets with a higher state basis because of:

addition or subtraction.

(1) taxable corporate liquidation prior to January 1,

1985; (2) exchange of property corporate liquidation

Adjust the federal gain or loss to reflect any difference in

prior to January 1, 1985; (3) exchange of property prior

the South Carolina basis and federal basis due to a

to January 1, 1985, as a result of not having a situs in

difference in laws prior to January 1, 1985. This may be

South Carolina; or (4) IRC Section 179 expensing prior

an addition or subtraction.

to January 1, 1985, may continue the state depreciation

in the same manner. If you elect to continue this option,

ACCOMMODATIONS TAX

subtract the excludable portion from your income.

Taxpayers who furnish accommodations to transients for

Job credit wage reductions for federal purposes are

one week or less in any calendar quarter are required to

subtractions from income for South Carolina purposes.

remit the accommodation tax at the rate of seven percent of

the gross proceeds derived from the rental or charges for

Military Reserve and National Guard pay which is

accommodations.

Please

prepare

Form

ST-388

included in retirement income is not taxed for South

determine the tax.

Carolina purposes.

If you own a rental agency or more than one rental unit or

Determine the percentage of your military retirement

your rentals are in excess of one week a quarter, you are

considered a retailer. You must apply on Form SCTC-111

income which is excludable by dividing the length of time

and file returns as required. Form SCTC-111 may be

you served in the Reserves and/or National Guard (not

full time) by the length of time of your total military

obtained by telephone or from one of our local Taxpayer

service as follows:

Service Centers.

For further accommodations tax information, call (803)

Reserve time + National Guard time

% exclusion

898-5788 or contact your nearest Taxpayer Service Center.

Total Military time

(See the back of this booklet.) To order forms, call

Determine the excludable amount of your military

1-800-768-3676 or (803) 898-5320.

retirement income by multiplying it by the percentage of

exclusion as follows:

% exclusion X

total taxable military

= excludable military

retirement income shown

retirement

on federal return

income

Include the amount of excludable military retirement

income as a subtraction on line 53.

If you have adopted a "special needs child", you may

subtract $2,000 per year as long as the adopted child

qualifies as a dependent on your federal return.

Income Tax Return Instructions - State Of South Carolina Page 10

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