Sc Sch.tc-46 - Credit For S Corporation Bank Shareholders (Page 2 of 2) in pdf

Sc Sch.tc-46 - Credit For S Corporation Bank Shareholders Page 2

General Information

For calendar years beginning January 1, 2007, a taxpayer who is a shareholder in a bank that has a valid federal election

under Subchapter S is allowed a tax credit equal to the difference between: (A) his individual income tax after all other

credits, and (B) his individual income tax after all other credits, but excluding his prorata share of the net items of income

and expense of the bank. The credit may not exceed the taxpayer's prorata share of bank tax. Individual income tax

includes both the tax imposed on individuals and the tax on active trade or business income.

Line Instructions

In order to complete 9 through 13, you must complete a hypothetical return excluding the prorata net income (loss) from

line 8. Keep the hypothetical return with your tax records.

Line 9. Complete a hypothetical I-335 if you have elected to complete an actual I-335 with your return. On the

hypothetical I-335, recalculate the tax due on active trade or business income if prorata net income (loss) from the bank

to you as an S corporation shareholder is excluded.

Line 10. Recalculate your individual income tax due after excluding the prorata net income (loss) from the bank to you as

an S corporation shareholder, as well as the recalculated deduction for active trade or business income if it applies.

Social Security Privacy Act Disclosure

It is mandatory that you provide your social security number on this tax form if you are an individual taxpayer. 42 U.S.C

405(c)(2)(C)(i) permits a state to use an individual's social security number as means of identification in administration of

any tax. SC Regulation 117-201 mandates that any person required to make a return to the SC Department of Revenue

shall provide identifying numbers, as prescribed, for securing proper identification. Your social security number is used for

identification purposes.

The Family Privacy Protection Act

Under the Family Privacy Protection Act, the collection of personal information from citizens by the Department of

Revenue is limited to the information necessary for the Department to fulfill its statutory duties. In most instances, once

this information is collected by the Department, it is protected by law from public disclosure. In those situations where

public disclosure is not prohibited, the Family Privacy Protection Act prevents such information from being used by third

parties for commercial solicitation purposes.

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Sc Sch.tc-46 - Credit For S Corporation Bank Shareholders Page 2