Get Sc Revenue Advisory Bulletin #02-6 - South Carolina Department Of ...

It is customary for the seller of the property to pay all real estate transfer taxes in South Carolina. The transfer taxes are usually due at the time of closing, alongside other fees such as appraisal fees or agent fees.

Like a majority of states, South Carolina has an income tax that applies to profits made on real estate transactions. While this tax applies to both residents of South Carolina and non-residents, there is a difference on when the money is collected by the state.

In South Carolina, non-residents may be subject to withholding on their gain amounts. The South Carolina Code of Laws, Section 12-8-580, says that the purchasers are to withhold 7% of gain for individuals and 5% of gain for corporations that are considered a non-resident seller.

Net capital gains which have been held for a period of more than one year and have been included in the SC taxable income are reduced by 44% for SC income tax purposes. The term "net capital gain" means the excess of the net long-term capital gain for the taxable year over the net short-term capital loss for such year.

To qualify for the special 4% property tax assessment ratio, the owner of the property must have actually owned and occupied the residence as his legal residence and been occupying that address for some period during the applicable tax year. Only an owner-occupant is eligible to apply for the 4% special assessment.

South Carolina taxpayers ages 65 and older do not need to file a state income tax return in most cases. If your gross income is less than the federal gross income filing requirement, you shouldn't be required to file a SC state return. In addition, Social Security benefits are not taxed by the state of South Carolina.

Long-term capital gains are included in South Carolina taxable income and taxed at rates up to 7%. However, you can subtract up to 44% of your net South Carolina capital gains, so if you sell a home in South Carolina for a $100,000 profit, your South Carolina tax on that gain would be approximately $3,920.

South Carolina's Constitution requires that property be taxed equitably. When similar properties in the same taxing district are taxed differently because conditions have changed over a long period of time, the system becomes unequal. South Carolina law requires counties to reassess every five years.