South Carolina Code 12-6-2220. Allocation of interest, dividends, rents and royalties, gains and losses, and income from personal services
(1) Interest received from intangible property not connected with the taxpayer‘s business, less all related expenses, is allocated to the state of the corporation‘s principal place of business as defined in § 12-6-30(9) or the domicile of an individual taxpayer.
Terms Used In South Carolina Code 12-6-2220
- Business: includes trade, profession, occupation, or employment. See South Carolina Code 12-6-30
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- individual: means a human being. See South Carolina Code 12-2-20
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- nonresident individual: means an individual other than a resident individual or a part-year resident. See South Carolina Code 12-6-30
- Personal property: All property that is not real property.
- Principal place of business: means the domicile of a corporation. See South Carolina Code 12-6-30
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Resident individual: means an individual domiciled in this State. See South Carolina Code 12-6-30
- Taxpayer: includes an individual, trust, estate, partnership, association, company, corporation, or any other entity subject to the tax imposed by this chapter or required to file a return. See South Carolina Code 12-6-30
(2) Dividends received from corporate stocks not connected with the taxpayer’s business, less all related expenses, are allocated to the state of the corporation’s principal place of business as defined in § 12-6-30(9) or the domicile of an individual taxpayer.
(3) Rents and royalties received from the lease or rental of real estate or tangible personal property, less all related expenses, are allocated to the state where the property was located at the time the income was derived providing the property was not used in or connected with the taxpayer’s trade or business during the taxable year.
(4) Gains and losses from the sale of real property less all related expenses are allocated to the state in which the real property is located except to the extent that gain represents the return of amounts deducted as depreciation. The amount of gain which represents the return of amounts deducted as depreciation is allocated to this State to the extent of depreciation previously deducted in computing South Carolina taxable income.
(5) Gains and losses from sales of intangible personal property not connected with the business of the taxpayer and not held for sale to customers in the regular course of business, less all related expenses, are allocated to the state of the corporation’s principal place of business as defined in § 12-6-30(9) or the domicile of an individual taxpayer.
(6) All income from personal services received by a resident individual is allocated to this State. All income from personal services received by a nonresident individual for services rendered in this State is allocated to this State.