S 1072 General Bill, By Passailaigue
 A Bill to amend Section 12-7-430, Code of Laws of South Carolina, 1976,
 relating to income taxation, so as to add new appropriately numbered items to
 simplify the timing requirements for eligibility to utilize the rollover gain
 on the sale of a principle residence and to allow divorcing spouses to treat
 their residence as their principle residence to utilize the rollover of gain
 on the sale of the principle residence if they have lived in the residence a
 specified period of time prior to sale.

   10/07/91  Senate Prefiled
   10/07/91  Senate Referred to Committee on Finance
   01/14/92  Senate Introduced and read first time SJ-21
   01/14/92  Senate Referred to Committee on Finance SJ-21

A BILL

TO AMEND SECTION 12-7-430, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO INCOME TAXATION, SO AS TO ADD NEW APPROPRIATELY NUMBERED ITEMS TO SIMPLIFY THE TIMING REQUIREMENTS FOR ELIGIBILITY TO UTILIZE THE ROLLOVER GAIN ON THE SALE OF A PRINCIPLE RESIDENCE AND TO ALLOW DIVORCING SPOUSES TO TREAT THEIR RESIDENCE AS THEIR PRINCIPLE RESIDENCE TO UTILIZE THE ROLLOVER OF GAIN ON THE SALE OF THE PRINCIPLE RESIDENCE IF THEY HAVE LIVED IN THE RESIDENCE A SPECIFIED PERIOD OF TIME PRIOR TO SALE.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Section 12-7-430 of the 1976 Code is amended by adding new appropriately numbered items to read:

"( ) The gross income of a taxpayer is determined without the application of Internal Revenue Code Section 1034(d), relating to rollover of gain on the sale of principle residence.

( ) The determination of gross income as provided by Internal Revenue Code Section 1034(d) is made with the following modifications:

(1) If the taxpayer, during the period described in Internal Revenue Code Section 1034(a), purchases more than one residence which is used by him as his principal residence at some time within two years after the date of the sale of the old residence, only the first of such residences so used by him after the date of such sale shall constitute the new residence.

(2) If a residence is sold by an individual pursuant to a divorce or marital separation and the taxpayer used such residence as his principal residence at any time during the two-year period ending on the date of such sale, for purposes of this section, such residence shall be treated as the taxpayer's principal residence at the time of such sale.

( ) The provisions of subsections (h)(1) and (k) of Internal Revenue Code Section 1034 shall be applied but without inclusion of the phrase `(other than the two years referred to in subsection (c)(4))'."

SECTION 2. This act, upon approval by the Governor, shall be effective for tax years beginning after December 31, 1991.