Current Status Introducing Body:Senate Bill Number:29 Primary Sponsor:Passailaigue Committee Number:06 Type of Legislation:GB Subject:Income tax laws, liquidation of corporation Residing Body:Senate Current Committee:Finance Computer Document Number:29 Introduced Date:Jan 08, 1991 Last History Body:Senate Last History Date:Jan 08, 1991 Last History Type:Introduced and read first time, referred to Committee Scope of Legislation:Statewide All Sponsors:Passailaigue Type of Legislation:General Bill
Bill Body Date Action Description CMN ---- ------ ------------ ------------------------------ --- 29 Senate Jan 08, 1991 Introduced and read first 06 time, referred to Committee 29 Senate Sep 10, 1990 Prefiled, referred to 06 CommitteeView additional legislative information at the LPITS web site.
TO AMEND SECTION 12-7-435, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEDUCTIONS FROM SOUTH CAROLINA TAXABLE INCOME FOR PURPOSES OF THE STATE INCOME TAX, SO AS TO ALLOW CERTAIN SHAREHOLDERS TO DEDUCT UNUSED NET OPERATING LOSSES ON THE COMPLETE LIQUIDATION OF A CORPORATION WHICH FOR FEDERAL INCOME TAX PURPOSES ONLY WAS A SUBCHAPTER "S" CORPORATION AND TO ALLOW CERTAIN SHAREHOLDERS OF A CORPORATION ELECTING SUBCHAPTER "S" STATUS TO DEDUCT UNUSED NET OPERATING LOSSES.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 12-7-435 of the 1976 Code is amended by adding an appropriately lettered item to read:
"( ) the applicable proportionate share of unused net operating losses on complete liquidation of a corporation which is a subchapter 'S' corporation for federal income tax purposes only of:
(1) individuals who were shareholders when the net operating losses were incurred and remain shareholders up to the time of liquidation, and
(2) individuals who are shareholders at the time of liquidation but who acquired the shares by gift, bequest, or as an heir at law, from an individual who owned the shares when the net operating losses were incurred."
SECTION 2. Upon approval by the Governor, this act is effective for complete liquidations occurring after December 31, 1989.