Line 52 OTHER SUBTRACTIONS FROM INCOME
Since these subtractions apply only to a few people, they are not fully explained in this booklet. Attach an explanation of your entry on this line. Some examples of items which may be subtracted on this line are:
South Carolina does not recognize bonus depreciation in IRC Section 168(k). With or without bonus depreciation, the depreciable life of the property is the same for federal and state purposes. For the tax year in which the property is placed in service, a taxpayer must add back the difference, in the line for other additions, between the depreciation deduction allowed for federal purposes and the deduction that would have been allowed without bonus depreciation. Therefore, the South Carolina adjusted basis is greater than the federal adjusted basis. For all other years of the depreciable life of the property, an additional depreciation deduction is available for South Carolina purposes.
Effective for tax years beginning after 1984, South Carolina has adopted federal depreciation and Section 179 expensing for South Carolina income tax purposes. For taxable year 2003, South Carolina recognized limits for Section 179 that were lower than the federal amounts. Either the federal and state differences prior to 1985 or the different limits in 2003 may result in an add-back in the line for other additions. In that case, the South Carolina adjusted basis will be greater than the federal adjusted basis, and the taxpayer may claim an additional South Carolina depreciation deduction at the end of the federal depreciation period. At that time, the balance of personal property basis is depreciable at a rate of 50% per year. The balance of real property basis is depreciable at a rate of 20% per year.
A deduction is allowed to an individual for the purchase of economic impact zone stock. The deduction is equal to twenty percent of the total amount paid in cash by the taxpayer during the taxable year for the purchase of economic impact zone stock.
If you itemized and claimed a federal tax credit for qualified mortgage credit certificates (MCC), you may subtract the amount of the tax credit as interest.
South Carolina net operating loss. In no event is the same loss to be deducted more than once. (Attach your own worksheet.) No carryback losses are allowed.
Capital expenses amortized under federal statutes will be the same for state purposes. At the end of the federal amortization, the balance of capital expense amortized will continue until fully amortized for state purposes. The amortized amount is a subtraction from your income.
Legislators within a 50-mile radius of the State House are allowed to subtract travel expenses.
Job credit wage reductions for federal purposes are subtractions from income for South Carolina purposes.
Military Reserve and National Guard pay which is included in retirement income is not taxed for South Carolina purposes.