1.26 Ark. Code R. 51-404(a)(1)

Current through Register Vol. 49, No. 10, October, 2024

Rule 1.26-51-404(a)(1) - Definitions

Corporation income tax is imposed upon net income. In the computation of the tax, various classes of income must be considered.

(a) "Gross Income" means all income which flows to the taxpayer, other than a return of capital, and includes the forms of income specifically described as gains and profits, including gains derived from the sale or other disposition of capital assets. Many factors must be taken into consideration in accurately determining gross income, among which are inventories, accounts receivable, property exhaustion, accounts payable for expenses incurred and exemptions as allowed by Arkansas law.

(b) "Net income" is gross income less statutory deductions. The statutory deductions are generally, though not exclusively, expenditures (other than capital expenditures) connected with the production of income.

1.26 Ark. Code R. 51-404(a)(1)