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26-51-1801. Small business stock capital gains — Definitions.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-51-1801. Small business stock capital gains — Definitions.
(a) There shall be allowed a deduction from net income for a qualified small business net capital gain recognized on the sale of qualified small business stock for any taxable year in an amount equal to the following:
(1) For qualified small business stock held for a period of five (5) years from the date of the purchase of the stock, fifty percent (50%);
(2) For qualified small business stock held for a period of six (6) years from the purchase of the stock, sixty percent (60%);
(3) For qualified small business stock held for a period of seven (7) years from the purchase of the stock, seventy percent (70%);
(4) For qualified small business stock held for a period of eight (8) years from the purchase of the stock, eighty percent (80%);
(5) For qualified small business stock held for a period of nine (9) years from the purchase of the stock, ninety percent (90%); and
(6) For qualified small business stock held for a period of ten (10) years from the purchase of the stock, one hundred percent (100%).
(b) As used in this subchapter:
(1) “Qualified small business” means any domestic corporation whose total capitalization does not exceed one hundred million dollars ($100,000,000) and no more than ten percent (10%) of the firm's assets are held in the form of real estate during the holding periods set forth in subsection (a) of this section;
(2) “Qualified small business net capital gain” means the net capital gain for the taxable year determined by taking into account only gain or loss from sales or exchanges of qualified small business stock; and
(3) “Qualified small business stock” means stock issued directly by a qualified small business after December 31, 1998.
(c) Any taxpayer who seek
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-1801
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:26-51-1801
Source file: gov.ar.code.title.26.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 1e92e717e4cf07f3f1b5c04e5e4a2a32715dac7eabec9069bef846e386abd6d5
Source location: content.xml paragraph 16503
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26-51-1801. Small business stock capital gains — Definitions.
(a) There shall be allowed a deduction from net income for a qualified small business net capital gain recognized on the sale of qualified small business stock for any taxable year in an amount equal to the following:
(1) For qualified small business stock held for a period of five (5) years from the date of the purchase of the stock, fifty percent (50%);
(2) For qualified small business stock held for a period of six (6) years from the purchase of the stock, sixty percent (60%);
(3) For qualified small business stock held for a period of seven (7) years from the purchase of the stock, seventy percent (70%);
(4) For qualified small business stock held for a period of eight (8) years from the purchase of the stock, eighty percent (80%);
(5) For qualified small business stock held for a period of nine (9) years from the purchase of the stock, ninety percent (90%); and
(6) For qualified small business stock held for a period of ten (10) years from the purchase of the stock, one hundred percent (100%).
(b) As used in this subchapter:
(1) “Qualified small business” means any domestic corporation whose total capitalization does not exceed one hundred million dollars ($100,000,000) and no more than ten percent (10%) of the firm's assets are held in the form of real estate during the holding periods set forth in subsection (a) of this section;
(2) “Qualified small business net capital gain” means the net capital gain for the taxable year determined by taking into account only gain or loss from sales or exchanges of qualified small business stock; and
(3) “Qualified small business stock” means stock issued directly by a qualified small business after December 31, 1998.
(c) Any taxpayer who seeks to qualify for the income tax deduction set forth in this section must:
(1) Obtain a certified statement from the corporation issuing the qualified business stock stating:
(i) The name and address of the purchaser;
(ii) The number of shares of qualified small business stock purchased;
(iii) The amount paid by the original purchaser for the qualified small business stock; and
(iv) The dates of purchase and sale of the qualified small business stock; and
(2) Attach a copy of the statement described in subdivision (c)(1) of this section to the income tax return for the year the deduction is claimed.
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