Current Status Bill Number:3882 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19970409 Primary Sponsor:Davenport All Sponsors:Davenport Drafted Document Number:jic\6081htc.97 Residing Body:House Current Committee:Ways and Means Committee 30 HWM Subject:Income tax deductions, amount of gain on sale of real property used in trade or business, Taxation
Body Date Action Description Com Leg Involved
______ ________ _______________________________________ _______ ____________
House 19970409 Introduced, read first time, 30 HWM
referred to Committee
View additional legislative information at the LPITS web site.
TO AMEND SECTION 12-6-1140, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEDUCTIONS FROM SOUTH CAROLINA TAXABLE INCOME OF INDIVIDUALS FOR PURPOSES OF THE STATE INDIVIDUAL INCOME TAX, SO AS TO ALLOW A DEDUCTION OF THE AMOUNT OF GAIN RECOGNIZED ON A TAXPAYER'S FEDERAL INCOME TAX RETURN ATTRIBUTABLE TO THE SALE OF REAL PROPERTY USED IN THE TAXPAYER'S TRADE OR BUSINESS WHEN THE PROCEEDS ARE INVESTED WITHIN TWO YEARS IN REAL PROPERTY ON WHICH THE TAXPAYER'S TRADE OR BUSINESS IS CONTINUED, TO LIMIT THIS DEDUCTION TO SUCH GAIN NOT EXCEEDING FIVE HUNDRED THOUSAND DOLLARS, AND TO REQUIRE AMOUNTS DEDUCTED TO BE ADDED TO INCOME IN A SUBSEQUENT YEAR WHEN THE REINVESTED REQUIREMENTS ARE NOT MET.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-6-1140 of the 1976 Code, as last amended by Act 145 of 1995, is further amended by adding an appropriately numbered item at the end to read:
"( ) net gain not exceeding five hundred thousand dollars reported on the taxpayer's federal income tax return attributable to the sale of real property used in the taxpayer's trade or business when the total proceeds of the sale are invested within two years of the sale in real property on which the taxpayer continues the trade or business and in which the taxpayer has a basis higher than the initial basis of the real property sold. This deduction is allowed only when the real property both sold and acquired is the principal place from which the trade or business of the taxpayer is directed or managed. Proceeds not reinvested within the required period must be added to taxable income of the taxpayer in the year the period expires but only to the extent of the deduction previously claimed."
SECTION 2. Upon approval by the Governor, this act is effective for taxable year beginning after 1997.