1.26 Ark. Code R. 51-411
The amount realized from the sale or other disposition of property is the sum of any money received plus the fair market value of any property (other than money) received. The fair market value of property is a question of fact, but only in rare and extraordinary cases does property have no fair market value.
In computing the amount of gain or loss, the cost or other basis of the property sold shall be adjusted for items properly chargeable to the seller's capital account. Adjustments include expenditures (such as to maintain effective usefulness, losses, improvements, carrying charges (such as taxes) on nonproductive property, and deductions for exhaustion, wear and tear, obsolescence and depletion.
Any carrying charges deducted to compute taxable income will not be used to increase basis. Deductions allowable since the acquisition of the property, whether or not actually claimed by the taxpayer or formally allowed, will be used to adjust basis. Reduction in basis due to depletion shall not exceed such a deduction computed without reference to discovery for mines, oil and gas wells. The basis of stock shares must be reduced by the amount of previous distributions made as returns of capital.
1.26 Ark. Code R. 51-411