Fillable Form Sc1041 - Fiduciary Income Tax Return

Column C: Enter in column C that part of each item of income reported in Column B that is derived from South Carolina sources. Use direct

accounting whenever possible. Intangible income will not be considered to be from South Carolina sources except where it is a part of a

business, trade, or occupation carried on in South Carolina. Any item entered in column C should reflect only the amount that remains after

all modifications have been performed.

For Example: State or local income taxes deducted on the federal return would not be included in column C. State income tax refunds

reported as income on the federal return would not be included in column C. Also, any income from other estates, trusts, or partnerships

should be modified, if necessary, before the item is entered in column C.

Capital gains from South Carolina sources should be entered in column C only if the gain is distributed to the beneficiaries.

Depreciation, depletion, and S.C. estate tax on income in respect of a decedent should be entered on the appropriate lines of column

C (whether or not passed directly to the beneficiaries).

Deductions should be directly allocated where possible. If it is not possible to directly relate those deductions to income from South

Carolina sources they should be apportioned by multiplying the deductions by the ratio of total South Carolina income (line 9, column

C) divided by total federal income (line 9, column B).

Net income of the estate or trust from South Carolina sources after all modifications, is to be entered on line 22, column C.

Enter on line 23, column C the total percentages of all nonresident beneficiaries only. These percentages come from Part II, page 2.

Enter on line 24, column C the total income from South Carolina sources of all nonresident beneficiaries. This amount is computed by

multiplying line 22, column C by the percentage entered on line 23, Column C.

Column D: Column D is to be completed by nonresident fiduciaries only. Enter in column D that part of column C applicable to the

fiduciary. The amount to be entered in column D is computed by multiplying each entry in column C by the fiduciary's percentage of the

South Carolina fiduciary adjustment as shown in Part II, page 2. A capital gain from South Carolina sources that is not distributed to the

beneficiaries should be entered on line 4 of column D. Line 22, column D is the net income of the nonresident estate or trust from South

Carolina sources applicable to the fiduciary which should be entered on line 1, page 1.

Part IV - NONRESIDENT BENEFICIARIES' SHARES OF INCOME AND CREDITS

Column A: Enter the names of the nonresident beneficiaries receiving distributable South Carolina income. If the Social Security numbers

are not listed on either page 2 or on SC41, attach a schedule of this information. It is important that the correct Social Security numbers

be listed for each beneficiary to assure proper posting to their accounts.

Column B: Enter in column B each nonresident beneficiary's percentage as computed in Part II, page 2.

Column C: Enter in column C the capital gain (loss) reportable to South Carolina by each nonresident beneficiary.

Column D: Enter each beneficiary's portion of the total ordinary income from South Carolina sources by multiplying column B by the

amount on line 22, column C, Part III, page 3 after subtracting any capital gain on line 4.

Column E: Enter the amount of each nonresident beneficiary's income that is exempt from withholding by I-41 Affidavit.

Column F: Add columns C and column D less column E amounts. Compute 7% of these amounts for each beneficiary and enter the

amount in column F. The tax reported in this column is to be withheld by the fiduciary from the beneficiary. It is to be paid by the fiduciary

to the state of South Carolina at the time estimated tax payments are due. If any tax is required to be withheld, complete SC41 for each

nonresident beneficiary.

PART V - NONRESIDENT EXEMPTION ALLOWANCE FOR FIDUCIARY

Part V is to be completed only by nonresident estates or trusts. This part is to assist in the computation of the exemption allowance

allowable to the nonresident estate or trust.

Line 1 - Exemption Allowance Per Federal Return: Enter on line 1 the exemption allowance claimed on the federal fiduciary return.

Line 2 - Ratio: Divide the amount shown on line 9, column D, Part III, by the amount shown on line 9, column B, Part III.

Line 3 - South Carolina Nonresident Fiduciary Exemption: Multiply the amount on line 1 by percentage on line 2 and enter amount on line

3, Part V and line 6, page 1, Form SC1041.

WHICH FIDUCIARIES MUST FILE A DECLARATION OF ESTIMATED TAX

Generally, a fiduciary must file a declaration of estimated tax if the expected total amount of tax owed when the return is filed will be $100

or more. Estates are not required to file a declaration of estimated tax for the first two tax years after decedent's death. To file estimated

tax, complete SC1041ES South Carolina Declaration of Estimated Tax for Fiduciaries. SC1041ES is available on our website

Form Sc1041 - Fiduciary Income Tax Return - 2014 Page 9

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