Arkansas Code § 26-51-436 - Deductions -- Limitations

Notwithstanding any other provision of the Income Tax Act of 1929 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 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, 2011, 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.

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Last modified: November 15, 2016