Form Sc1041 - Fiduciary Income Tax Return - 2007 (Page 2 of 4) in pdf

Page 2

Name and Federal I.D. on page 1

Part I - SOUTH CAROLINA FIDUCIARY ADJUSTMENT

Adjustments to amount

included in federal

1. Additions to federal taxable income:

distributable net income

a. State and local interest

b. State or local taxes measured by income deducted on the federal return

Federal net operating loss carryover

d. Out-of state losses

e. Other additions to income (see instructions) - ATTACH AN EXPLANATION

Total additions to federal income (add lines 1a through 1e)

2. Subtractions from federal taxable income

a. Interest on US Government obligations

b. State income tax refunds reported as income on federal return

South Carolina net operating loss carry-forward (attach schedule)

d. Active Trade or Business Income Deduction (I-335, line 5)

Other subtractions from income (see instructions) - ATTACH AN EXPLANATION

Total subtractions from federal taxable income (add lines 2a through 2e)

3. Total (subtract line 2f from line 1f)

4. Fiduciary adjustment from other estates or trusts and partnership adjustment (attach schedule)

5. South Carolina fiduciary adjustment (add lines 3 and 4) Addition

or Subtraction

Part II - ALLOCATION OF SOUTH CAROLINA FIDUCIARY ADJUSTMENT

Complete ONLY if Part I indicates a South Carolina Fiduciary Adjustment. It is allocated among all beneficiaries and fiduciary in the same ratio as their

relative shares of Federal Distributable Net Income. Nonresident beneficiaries see parts III and IV for computation of income.

Shares of South Carolina

Name of each beneficiary. Check box if beneficiary is a nonresident. All beneficiaries

Shares of Federal

Fiduciary Adjustment

receiving federal K-1 must be listed. Use attachment if more than eight.

Distributable Net Income

Addition

or Subtraction

Social Security Number

3. Percent

2. Amount

Fiduciary

Totals

100%

COLUMN 2 - Total federal distributable net income must be the same as line 7, Schedule B Form 1041.

COLUMN 3 - Indicate percentages with two numbers, such as 32%, 3.2% and .32%.

COLUMN 4 - Enter South Carolina Fiduciary Adjustment from line 5, Part I as the total of Column 4. Multiply each percentage in Column 3 times the

total in Column 4. Indicate at the top of Column 4, whether the adjustments are additions or subtractions. If the adjustment is a subtraction, it may not

offset more than the amount reportable from the fiduciary for federal tax purposes (except in the final or termination year).

COLUMNS 2, 3, AND 4 - Attach a detailed explanation of the allocation method used if there is no federal distributable net income, or, if the

percentages do not agree with the relative shares indicated on Form 1041, Schedules B and K-1.

COLUMN 4 - The amount after each name is reported as a modification, either an addition to or subtraction from federal taxable income. Each resident

beneficiary should add the explanation: "fiduciary adjustment - (name of estate or trust)". A copy of this schedule (or its information) must be provided to

each resident beneficiary. The fiduciary's share of the adjustment is entered on line 4 of page 1.

EXAMPLE OF COMPUTATION:

2007 TAX COMPUTATION SCHEDULE

ESTATES AND TRUSTS TAX RATE

South Carolina taxable income on SC1041 line 7 is $15,240.

If the income is:

Compute your tax as follows and enter

$15,240 income from line 7

the results on SC1041 line 8.

.07 percent from tax computation schedule

1,067 (1,066.80 rounded to the nearest whole dollar)

OVER -