(B)

1. (1) A composite return is a single return for two or more taxpayers having the same tax year in which each participant's share of the partnerships or "S" Corporation's taxable income or loss is separately computed and added together to arrive at the total tax due on the composite return. The partnership or "S" Corporation may elect to determine each participant's tax due by one of the following methods:

   1. (a) compute the pro rata share of the standard deduction or itemized deductions, and personal exemption amount for each participant pursuant to Section 12-6-1720(2) in the same manner as if it was being separately reported; or
   2. (b) compute each participant's share of South Carolina income without regard to any deductions or exemptions.
2. (2) The composite return is signed by a general partner or an authorized officer of the "S" Corporation.

(C)

1. (1) A composite return may be filed even if some of the nonresident fiduciary and individual shareholders and partners eligible to participate in filing a composite return choose not to participate. Corporate taxpayers may not participate in a composite return.
2. (2) A nonresident participating in the composite return that has South Carolina income from sources other than the entity filing the composite return is required to file appropriate returns and make payment of all South Carolina taxes required by law. Taxes paid for the nonresident with the composite return shall reduce taxes due at the time the nonresident subject to this subitem files a separate return for the tax year reporting South Carolina income from all sources. The entity shall furnish to each nonresident a written statement as required by Section 12-8-1540(A) as proof of the amount that has been paid by the partnership or "S" corporation as estimated payments for the nonresident and the amount paid for the nonresident with the composite return.