1.26 Ark. Code R. 51-419
Arkansas has adopted IRC Section 170 as referenced in ACA 26-51-419. Section 170(d)(2)(B) does not allow unused contributions to increase NOL carry forward. It merely decreases net taxable income by current year contributions first, then any accumulated contribution carryforwards up to a 10% limitation. This decreases the amount of NOL used and increases the NOL available for future years.
LIMITS ON CHARITABLE CONTRIBUTIONS
Year | Contributions | Utilized Current Year Limit | Current Year Balance | Prior Years Contribution Utilized | Year End Cumulative Carryforward | expired |
1989 | 1,000 | 0 | 1,000 | 0 | 1,000 | 0 |
1990 | 1,000 | 0 | 1,000 | 0 | 2,000 | 0 |
1991 | 1,000 | 0 | 1,000 | 0 | 3,000 | 0 |
1992 | 1,000 | 100 | 900 | 0 | 3,900 | 0 |
1993 | 1,000 | 300 | 700 | 0 | 4,600 | 0 |
1994 | 1,000 | 0 | 1,000 | 0 | 4,600 | 1,000* |
1995 | 1,000 | 1,000 | 0 | 3,500 | 1,100 | 0 |
Southern Arkansas Timber, Inc. started business on 01/01/89. Organization expenses amounted to $10,000. Amortization of organization expenditures is deducted before the 10% limit is allowed. Any unused charitable contributions cannot be added to NOLs when they expire.
* Contribution carryover from 1989 expired at the end of 1994 as shown in chart.
For charitable contributions for consolidated filers, refer to ACA 26-51-805(f).
1.26 Ark. Code R. 51-419