Section 26-51-457 - Claim of right(a) Title 26 U.S.C. § 1341(a)(1)-(3) and (b)(2), as they existed on January 1, 2013, regarding the computation of income tax when a taxpayer restores a substantial amount held under a claim of right, is adopted for purposes of computing income tax liability under this chapter.(b)(1) Title 26 U.S.C. § 1341(a)(4) and (5), (b)(1), and (b)(3)-(5), concerning the methods of calculating the deduction authorized under 26 U.S.C. § 1341 and special rules for net operating losses and capital losses, are not adopted.(2) For the purpose of computing income tax when a taxpayer restores a substantial amount held under a claim of right under this section:(A) The tax imposed under this chapter is calculated for the taxable year by allowing a deduction in the tax year the taxpayer restores the amount held under a claim of right; and(B) Net operating losses and capital losses are calculated and deducted under §§ 26-51-427 and 26-51-815.(c) The Secretary of the Department of Finance and Administration may promulgate rules to administer this section.Amended by Act 2019, No. 910,§ 3720, eff. 7/1/2019.Added by Act 2013, No. 1284,§ 1, eff. for tax years beginning on or after January 1, 2013.