Fillable Form Sc1041 - Fiduciary Income Tax Return

INSTRUCTIONS FOR FIDUCIARY INCOME TAX RETURN

SOUTH CAROLINA DEPARTMENT OF REVENUE SC1041

(Rev. 10/28/15)

NEW SC1041 K-1

SC1041 K-1 is prepared by the estate or trust to show each beneficiary's share of the entity's income. Each item of income is adjusted as

required by South Carolina law and allocated or apportioned to South Carolina or to states other than South Carolina.

REMINDERS

You must add back the federal deduction for domestic production activities provided in IRC Section 199.

A charitable deduction for a gift of land, under IRC Section 170, must be added back unless the intent of the donor meets the

requirements of S.C. Code Section 12-6-5590.

South Carolina specifically does not recognize IRC Section 168(k) bonus depreciation.

SC8736 is the extension form for partnership and fiduciary returns.

An amended SC1041 must be filed whenever the Internal Revenue Service adjusts a Federal Form 1041.

FILING REQUIREMENTS

The fiduciary of a resident estate or trust must file a South Carolina Fiduciary return (SC1041) if the estate or trust:

(a) is required to file a federal fiduciary income tax return for the taxable year, or

(b) had any South Carolina taxable income for the taxable year, or

The fiduciary of a nonresident estate or trust must file a South Carolina fiduciary return if the estate or trust had income or gain derived from

South Carolina sources.

Income from South Carolina sources includes income or gain from:

(a) real or tangible personal property located within South Carolina,

(b) a business, profession or occupation carried on in South Carolina, or

For a nonresident estate or trust, income from the following is not considered to be derived from South Carolina sources: annuities, interest,

dividends or gain from the sale or exchange of intangible personal property, unless it is part of the income from a business, trade, profession

or occupation carried on within South Carolina.

RESIDENT AND NONRESIDENT ESTATES AND TRUSTS

A resident estate is the estate of a person who was a South Carolina resident at the time of death. All other estates are nonresident estates.

A resident trust is any trust which is administered in South Carolina. A trust being administered outside of South Carolina shall not be

considered a resident trust merely because the governing instrument or a law requires that the laws of South Carolina be followed with

respect to interpretation of administration of the trust. All other trusts are nonresident trusts.

WHERE TO OBTAIN FORMS

Forms can be found on our website or by calling the Forms Request Line at (803) 898-5320 or (800) 768-3676.

WHEN AND WHERE TO FILE

A South Carolina fiduciary return of income should be completed after the federal fiduciary return is completed, but is due no later than the

15th day of the 4th month after the close of the taxable year. Failure to file the return on time may subject the fiduciary to penalty. If additional

time is needed to file your SC1041 you may file SC8736 by the due date of the return. SC Department of Revenue will accept a federal

extension in lieu of SC8736 provided the South Carolina income tax return shows a refund or no balance due when the return is

filed. If you intend to use the federal extension in lieu of South Carolina's extension, it is not necessary to send South Carolina a copy of the

federal extension form by the due date of the tax return. Attach a copy of the federal extension when you file the tax return within the

extended period. Balance due returns should be mailed to SC DEPARTMENT OF REVENUE, TAXABLE FIDUCIARY, COLUMBIA, SC

29214-0038. Refunds or zero tax returns should be mailed to SC DEPARTMENT OF REVENUE, NONTAXABLE FIDUCIARY, COLUMBIA,

SC 29214-0039.

PAYMENT OF TAX

The balance of the tax shown to be due on line 20, page 1 of SC1041, must be paid in full. Failure to pay your tax on time may subject you to

assessment of penalty and interest. Payment should be made by check or money order to "SC Department of Revenue."

ACCOUNTING PERIOD

The accounting period for which SC1041 is filed and the method of accounting used must be the same as that used for federal tax purposes.

If the estate's or trust's taxable year method of accounting is changed for federal purposes, the change applies to SC1041 as well.

Form Sc1041 - Fiduciary Income Tax Return - 2015 Page 4

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