Form Sc 1101 B - South Carolina Bank Tax Return (Page 5 of 5) in pdf

Line by Line Instructions

Line 1

Enter the taxable income as shown on the federal tax return. The federal return and all supporting schedules

must be attached.

Line 2

Net Adjustment - see Schedules A and B.

Additions to federal taxable income include all income items which are recorded on the books but are not

included in federal taxable income. Examples:

(1) Interest on state and local obligations.

(2) Accretion of bond discount.

Additions to federal taxable income also include all expenses deducted on the federal return which are not

charged against book income. Examples:

(1) Federal bad debt deduction.

(2) Federal depreciation in excess of book.

(3) Federal net operating loss deduction. (Banks are not allowed a net operating loss deduction.)

Deductions from federal taxable income include all income items subject to tax on the federal return that have

not been included in book income. Examples:

(1) Tax over book sale income.

(2) Tax over book securities income.

Deductions from federal taxable income also include all expenses that have been recorded on the books but

which have not been deducted on the federal return. Examples:

(1) Nondeductible travel and entertainment expense.

(2) Nondeductible amortization.

Line 4 - ALLOCATION AND APPORTIONMENT Generally the taxable income related to the business of a multistate

bank is apportioned to SC using the gross receipts method of Code Section 12-6-2290. Gains and losses from real

property less related expenses are allocated to the state where the real property is located. Dividends received from

corporate stocks not connected with the taxpayer's business less all related expenses, are allocated to the state of a

bank's principal place of business.

Line 6 - Attach SC1120-TC and applicable tax credit schedules. The credits claimed cannot exceed your tax liability.

Line 10 - UNDERPAYMENT OF ESTIMATED TAX If the bank underpaid it's estimated tax, complete SC2220 and

attach it to the return. If the bank owes a penalty, show the amount in the space provided. If the bank is due a refund,

subtract the penalty amount from the overpayment shown on line 12. SC2220 is available upon request or visit our

website:

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Form Sc 1101 B - South Carolina Bank Tax Return Page 5