Arkansas Code Title 26, Subtitle 5, Chapter 51, Subchapter 4 - Computation of Tax Liability

• § 26-51-401 - Tax Year -- Accounting Method.
  (a) A taxpayer must calculate his or her Arkansas income tax liability using the same accounting method for Arkansas income tax purposes as used...
• § 26-51-402 - Tax Year -- Basis for Determining Liability.
  (a) A taxpayer must calculate his or her Arkansas income tax liability using the same income year for Arkansas income tax purposes as used...
• § 26-51-403 - Income Generally.
  (a) The term "net income" means the adjusted gross income of a taxpayer less the deductions allowed by the Income Tax Act of 1929,...
• § 26-51-404 - Gross Income Generally.
  (a) (1) "Gross income" includes: (A) Gains, profits, and income derived from salaries, wages, or compensation for personal service of whatever kind and in...
• § 26-51-405 - Partnership Income.
  (a) An individual carrying on business as a partner in a partnership shall be liable for income tax only in his or her individual...
• § 26-51-406 - Income to Beneficiaries of Trusts and Estates.
  (a) Every individual, taxable under the Income Tax Act of 1929, who is a beneficiary of an estate or trust shall include in his...
• § 26-51-407 - Financial Institutions.
  (a) A financial institution having its principal office in this state shall be taxed as a business corporation organized and existing under the laws...
• § 26-51-408 - Dividends of Financial Institutions Taxable.
  Dividends paid on shares of stock of financial institutions shall be subject to income tax under the Income Tax Act of 1929, § 26-51-101...
• § 26-51-409 - Federal Subchapter S Adopted.
  (a) Subchapter S of the Internal Revenue Code, 26 U.S.C. § 1361 et seq., as in effect on January 1, 2015, regarding small business...
• § 26-51-410 - Inventory.
  Whenever, in the opinion of the Director of the Department of Finance and Administration, the use of inventories is necessary in order to clearly...
• § 26-51-411 - Gain or Loss -- Sales of Property.
  (a) For the purpose of ascertaining the gain or loss from the sale or other disposition of real, personal, or mixed property, the basis...
• § 26-51-412 - Gain or Loss -- Exchange of Property.
  (a) (1) For the purpose of determining gain or loss, when property is exchanged for other property the property received in exchange shall be...
• § 26-51-413 - Corporate Liquidations.
  (a) Title 26 U.S.C. §§ 332, 334, 336, 337, and 338, as in effect on January 1, 2007, regarding the liquidations of corporations, are...
• § 26-51-414 - Deferred Compensation Plans.
  (a) (1) The following sections relating to annuities, retirement savings, and employee benefit plans are adopted for the purpose of computing Arkansas income tax...
• § 26-51-415 - Deductions -- Interest.
  Title 26 U.S.C. § 163, as in effect on January 1, 2015, regarding deductions for interest expenses, is adopted for the purpose of computing...
• § 26-51-416 - Deductions -- Taxes.
  In computing net income, there shall be allowed as deductions taxes paid or accrued within the income year, imposed by the authority of the...
• § 26-51-417 - Deductions -- Alimony or Separate Maintenance.
  (a) Title 26 U.S.C. § 71, in effect on January 1, 1987, is adopted for purposes of determining the amount of alimony or separate...
• § 26-51-418 - Deductions -- Disabled Children.
  (a) In addition to any other state income tax deduction permitted by law, a taxpayer in this state who is maintaining, supporting, and caring...
• § 26-51-419 - Deductions -- Charitable Contributions.
  (a) (1) Title 26 U.S.C. § 170, as in effect on January 1, 2015, regarding deductions for charitable contributions, is adopted for the purpose...
• § 26-51-420 - Deductions -- Education Service Cooperative Contributions.
  Education service cooperatives created under The Education Service Cooperative Act of 1985, § 6-13-1001 et seq., are declared instrumentalities and political subdivisions of the...
• § 26-51-421 - [Repealed.]
• § 26-51-422 - Deductions -- Fair Market Value of Donated Artistic, Literary, and Musical Creations.
  (a) In computing net income for the purposes of the Income Tax Act of 1929, § 26-51-101 et seq., there shall be allowed as...
• § 26-51-423 - Deductions -- Expenses.
  (a) In computing net income, there shall be allowed as deductions the following expenses: (1) Business Expenses. All of 26 U.S.C. § 162, except...
• § 26-51-424 - Deductions -- Losses.
  (a) (1) In computing net income there shall be allowed as a deduction any loss sustained during the income year and not compensated for...
• § 26-51-425 - Deductions -- Worthless Debts.
  In computing net income there shall be allowed as deductions debts ascertained to be worthless and actually charged off the books of the taxpayer...
• § 26-51-426 - Deductions -- Reserve for Bad Debts or Liabilities.
  Any bank, building and loan, savings and loan, or any other savings institution chartered and supervised as a savings and loan or similar associations...
• § 26-51-427 - Deductions -- Net Operating Loss Carryover.
  In addition to other deductions allowed by this chapter, there shall be allowed as a deduction from gross income a net operating loss carryover...
• § 26-51-428 - Depreciation -- Deductions -- Expensing of Property. [Effective Until Contingency in Acts 2007, No. 613, § 2 is Met.]
  (a) Title 26 U.S.C. §§ 167 and 168(a)-(j), as in effect on January 1, 2015, and 26 U.S.C. § 179, as in effect on...
• § 26-51-429 - Deductions -- Depletion Allowances.
  (a) In the case of all natural resources for which a deduction for depletion is allowed under 26 U.S.C. §§ 611, the provisions of...
• § 26-51-430 - Deductions -- Standard Deduction.
  (a) (1) In lieu of itemizing deductions, each taxpayer may elect to use the standard deduction. (2) In the case of a married couple,...
• § 26-51-431 - Items Not Deductible in Net Income Computation.
  (a) In computing net income, no deduction shall in any case be allowed in respect of: (1) Personal, living, or family expenses, except that...
• § 26-51-432 -- 26-51-434 - [Repealed.]
• § 26-51-435 - Nonresidents or Part-Year Residents.
  (a) Nonresidents or part-year residents of Arkansas shall compute their taxable income as if all income were earned in Arkansas.(b) Using Arkansas income tax...
• § 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....
• § 26-51-437 - Miscellaneous Itemized Deductions.
  (a) In the case of an individual, the miscellaneous itemized deductions for any taxable year shall be allowed only to the extent that the...
• § 26-51-438 - [Repealed.]
• § 26-51-439 - Capitalization of Certain Expenses.
  (a) Title 26 U.S.C. § 263A(a)-(h) as in effect on January 1, 2007, regarding capitalization and inclusion in inventory costs of certain expenses, are...
• § 26-51-440 - Federal Subchapter M Adopted.
  (a) (1) Subchapter M of the Internal Revenue Code, 26 U.S.C. § 851 et seq., as in effect on January 1, 2015, relating to...
• § 26-51-441 - [Transferred].
• § 26-51-442 - Sale of Property to Comply With Conflict-Of-interest Requirements.
  Title 26 U.S.C. § 1043, as in effect on January 1, 1993, is hereby adopted.
• § 26-51-443 - Allocation of Unstated Interest -- Foregone Interest.
  (a) Title 26 U.S.C. § 483, as in effect on January 1, 1999, regarding the allocation of unstated interest, is adopted for the purpose...
• § 26-51-444 - Deductions -- Soil and Water Conservation.
  Title 26 U.S.C. § 175, as in effect on January 1, 1995, regarding the deduction of certain expenditures related to soil and water conservation...
• § 26-51-445 - Adoption Expenses.
  (a) Title 26 U.S.C. § 23, as in effect on January 2, 2013, and 26 U.S.C. § 36C, as in effect on January 2,...
• § 26-51-446 - Long-Term Intergenerational Security.
  (a) (1) All distributions of funds other than principal from the trust shall be taxable as provided in the Income Tax Act of 1929,...
• § 26-51-447 - Deductions -- Tuition to Post-Secondary Educational Institutions.
  (a) In computing net income for the purposes of the Income Tax Act of 1929, § 26-51-101 et seq., there shall be allowed as...
• § 26-51-448 - Educational Individual Retirement Accounts.
  (a) Title 26 U.S.C. § 530, as in effect on January 2, 2013, relating to educational individual retirement accounts, is adopted for the purpose...
• § 26-51-449 - [Transferred].
• § 26-51-450 - Deductions -- Small Business Guaranty Fees.
  (a) In computing net income, there shall be allowed as a deduction the amount paid during a taxable year to the United States Small...
• § 26-51-451, 26-51-452 - [Transferred].
• § 26-51-453 - Health Savings Accounts.
  (a) Title 26 U.S.C. § 223(a)-(d), (e)(2), (f), and (g), as in effect on January 1, 2011, regarding a deduction from income for amounts...
• § 26-51-454 - [Transferred].
• § 26-51-455 - [Transferred].
• § 26-51-456 - [Transferred].
• § 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...
• § 26-51-458 - Deduction -- Volunteer Firefighter.
  (a) In computing net income for the purposes of the Income Tax Act of 1929, § 26-51-101 et seq., there is allowed as a...

Last modified: November 15, 2016