Ark. Code § 26-51-436

Current with legislation from 2024 Fiscal and Special Sessions.

Section 26-51-436 - Deductions - Limitations

Notwithstanding any other provision of the Income Tax Act of 1929, § 26-51-101 et seq., with regard to deductions allowed in computing net income:

(1) Title 26 U.S.C. § 465, as in effect on January 1, 1987, is adopted to limit deductions claimed under the Income Tax Act of 1929, § 26-51-101 et seq., to the amount the taxpayer has at risk, as that term is used in the federal income tax law;

(2) Title 26 U.S.C. § 469, as in effect on January 1, 1997, regarding the limitations on deductibility of passive activity losses and credits, is adopted for the purpose of computing Arkansas income tax liability;

(3) Title 26 U.S.C. § 280F(a)-(d), as in effect on January 1, 2019, regarding investment tax credit and depreciation for luxury automobiles and other property, is adopted for purposes of computing Arkansas income tax liability;

(4) Title 26 U.S.C. § 68, as in effect on January 1, 2011, is adopted to limit itemized deductions;

(5) Title 26 U.S.C. § 220, as in effect on January 1, 2011, regarding the deductibility from income of contributions made to a medical savings account by the taxpayer or the taxpayer's employer, is adopted for the purpose of computing Arkansas income tax liability;

(6) Title 26 U.S.C. § 264, as in effect on January 1, 1999, regarding premium and interest deductions on life insurance of officers and employees, is adopted for the purpose of computing Arkansas income tax liability; and

(7) Title 26 U.S.C. § 470, as in effect on January 1, 2009, regarding leasing transactions between taxpayers, is adopted for the purpose of computing Arkansas income tax liability.

Ark. Code § 26-51-436

Amended by Act 2019, No. 870,§ 10, eff. for tax years beginning on or after 1/1/2019.

Acts 1929, No. 118, Art. 3, § 13; 1987, No. 382, § 21; 1989, No. 826, §§ 5, 32; 1991, No. 95, § 4; 1991, No. 685, § 3; 1995, No. 1160, § 1; 1997, No. 951, §§ 14, 21; 1997, No. 1000, § 16; 1999, No. 1126, § 35; 2001, No. 634, § 1; 2003, No. 336, § 1; 2003, No. 663, § 10; 2005, No. 94, § 5; 2005, No. 675, § 11; 2007, No. 218, § 28; 2009, No. 372, §§ 20, 21; 2011, No. 787, §§ 26-28.