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26-51-411. Gain or loss — Sale of property.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-51-411. Gain or loss — Sale 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 shall be, in the case of property acquired before January 1, 1928, the assessed valuation of such property on the county tax books as of that date if such assessed valuation exceeds the original cost and, in all other cases, the cost of such property, except that:
(1) In the case of such property which should be included in the inventory, the basis shall be the last inventory value;
(2)(A) In the case of property acquired by gift after March 9, 1929, the basis shall be the same as that which it would have been in the hands of the donor or the last preceding owner by whom it was not acquired by gift.
(B) If the facts necessary to determine such basis are unknown to the donee, the Secretary of the Department of Finance and Administration shall use the assessed valuation of the property;
(3) In the case of such property acquired by gift on or before March 9, 1929, the basis for ascertaining gain or loss from sale or other disposition of such property shall be the assessed valuation; and
(4) In the case of such property acquired by bequest, devise, or inheritance, the basis shall be the appraised value of such property upon which state inheritance tax or estate tax was paid.
(b) The basis for ascertaining the gain derived or loss sustained from the sale or other disposition of real, personal, or mixed property acquired before January 1, 1928, shall be the assessed value of such property including improvements as of January 1, 1928, or the actual cost of such property, but:
(1) If its assessed valuation as of January 1, 1928, is in excess of its sale price at the time of disposition
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-411
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Stable record: arkansas_code:legal_authorities:26-51-411
Source file: gov.ar.code.title.26.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 1d73488e8c44953ceed70bf805b626986a79a1590fe4496509d1146b6651b165
Source location: content.xml paragraph 12445
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26-51-411. Gain or loss — Sale 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 shall be, in the case of property acquired before January 1, 1928, the assessed valuation of such property on the county tax books as of that date if such assessed valuation exceeds the original cost and, in all other cases, the cost of such property, except that:
(1) In the case of such property which should be included in the inventory, the basis shall be the last inventory value;
(2)(A) In the case of property acquired by gift after March 9, 1929, the basis shall be the same as that which it would have been in the hands of the donor or the last preceding owner by whom it was not acquired by gift.
(B) If the facts necessary to determine such basis are unknown to the donee, the Secretary of the Department of Finance and Administration shall use the assessed valuation of the property;
(3) In the case of such property acquired by gift on or before March 9, 1929, the basis for ascertaining gain or loss from sale or other disposition of such property shall be the assessed valuation; and
(4) In the case of such property acquired by bequest, devise, or inheritance, the basis shall be the appraised value of such property upon which state inheritance tax or estate tax was paid.
(b) The basis for ascertaining the gain derived or loss sustained from the sale or other disposition of real, personal, or mixed property acquired before January 1, 1928, shall be the assessed value of such property including improvements as of January 1, 1928, or the actual cost of such property, but:
(1) If its assessed valuation as of January 1, 1928, is in excess of its sale price at the time of disposition, then the deductible loss shall be the difference between the assessed valuation on January 1, 1928, and the amount realized from the sale less depreciation or depletion subsequently sustained;
(2) If the assessed valuation as of January 1, 1928, is less than the sale price, then the taxable gain shall be the excess realized over the assessed valuation plus depreciation or depletion subsequently sustained; and
(3) If the amount realized is more than the cost price but not more than its assessed valuation as of January 1, 1928, or less than the cost but not less than its assessed valuation on January 1, 1928, then no gain shall be included in and no loss deducted from the gross income.
(c) For the purpose of the Income Tax Act of 1929, § 26-51-101 et seq., on any exchange of real, personal, or mixed property for any other like property of similar value no gain or loss shall be recognized.
(d)(1) In computing gain or loss from the sale of property, the difference between the amount realized and the adjusted basis is the amount of the gain or loss.
(2) The adjusted basis of the property is its cost, increased for capital charges and decreased for depreciation and for depletion.
(3) The amount realized from a sale or other disposition of property is the sum of any money received plus the fair market value of property or services received, less expenses.
(e) Title 26 U.S.C. §§ 453, 453A, and 453B, as in effect on January 1, 2005, are adopted concerning the installment method of accounting.
(f) Title 26 U.S.C. § 1045, as in effect on January 1, 1999, regarding gain on the sale or exchange of qualified small business stock, is adopted for the purpose of computing Arkansas income tax liability.
(g) Title 26 U.S.C. §§ 1258 and 1259, as in effect on January 1, 1999, regarding appreciated financial positions, are adopted for the purpose of computing Arkansas income tax liability.
(h) Title 26 U.S.C. § 267, as in effect on January 1, 2017, regarding losses, expenses, and interest arising from transactions between related taxpayers, is adopted for the purpose of computing Arkansas income tax liability.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Nonrecognition of gain** In the case of any sale of qualified small business stock held by a taxpayer other than a corporation for more than 6 months and with respect to which such taxpayer elects the application of this section, gain from such sale shall be recognized only to the extent that the amount realized on such sale exceeds—
(1) the cost of any qualified small business stock purchased by the taxpayer during the 60-day period beginning on the date of such sale, reduced by
(2) any portion of such cost previously taken into account under this section.
This section shall not apply to any gain which is treated as ordinary income for purposes of this title.
**(b) Definitions and special rules** For purposes of this section—
(1) **Qualified small business stock** — The term “qualified small business stock” has the meaning given such term by section 1202(c).
(2) **Purchase** — A taxpayer shall be treated as having purchased any property if, but for paragraph (3), the unadjusted basis of such property in the hands of the taxpayer would be its cost (within the meaning of section 1012).
(3) **Basis adjustments** — If gain from any sale is not recognized by reason of subsection (a), such gain shall be applied to reduce (in the order acquired) the basis for determining gain or loss of any qualified small business stock which is purchased by the taxpayer during the 60-day period described in subsection (a).
(4) **Holding period** — For purposes of determining whether the nonrecognition of gain under subsection (a) applies to stock which is sold—
(A) the taxpayer’s holding period for such stock and the stock referred to in subsection (a)(1) shall be determined without regard to section 1223, and
(B) only the first 6 months of the taxpayer’s holding period f
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 1045
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Federal law — U.S. Code and appendices · legal_authorities
Page 2292
TITLE 26—INTERNAL REVENUE CODE
[§ 1044
by this section [amending this section] shall apply to
sales after the date of enactment of this Act [Dec. 20,
2006].’’
EFFECTIVE DATE OF 1990 AMENDMENT
Pub. L. 101–508, title XI, § 11703(a)(2), Nov. 5, 1990, 104
Stat. 1388–517, provided that: ‘‘The amendment made by
paragraph (1) [amending this section] shall apply to
sales after November 30, 1989.’’
Pub. L. 101–280, § 6(a)(3), May 4, 1990, 104 Stat. 160, pro-
vided that: ‘‘The amendment made by paragraph (1)
[amending this section] and the provisions of paragraph
(2) [set out below] shall apply to sales after November
30, 1989.’’
EFFECTIVE DATE
Section applicable to sales after Nov. 30, 1989, see sec-
tion 502(c) of Pub. L. 101–194, set out as an Effective
Date of 1989 Amendment note under section 1016 of this
title.
PROPERTY SOLD BEFORE JUNE 19, 1990
Pub. L. 101–280, § 6(a)(2), May 4, 1990, 104 Stat. 160, pro-
vided that:
‘‘(A) For purposes of section 1043 of such Code—
‘‘(i) any property sold before June 19, 1990, shall be
treated as sold pursuant to a certificate of divestiture
(as defined in subsection (b)(2) thereof) if such a cer-
tificate is issued with respect to such sale before such
date, and
‘‘(ii) in any such case, the 60-day period referred to
in subsection (a) thereof shall not expire before the
end of the 60-day period beginning on the date on
which the certificate of divestiture was issued.
‘‘(B) Notwithstanding subparagraph (A), section 1043
of such Code shall not apply to any sale before April 19,
1990, unless—
‘‘(i) the sale was made in order to comply with an
ethics agreement or pursuant to specific direction
from the appropriate agency or confirming com-
mittee, and
‘‘(ii) the justification for the sale meets the criteria
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 1045
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Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** In the case of any gain—
(1) which (but for this section) would be treated as gain from the sale or exchange of a capital asset, and
(2) which is recognized on the disposition or other termination of any position which was held as part of a conversion transaction,
such gain (to the extent such gain does not exceed the applicable imputed income amount) shall be treated as ordinary income.
**(b) Applicable imputed income amount** For purposes of subsection (a), the term “applicable imputed income amount” means, with respect to any disposition or other termination referred to in subsection (a), an amount equal to—
(1) the amount of interest which would have accrued on the taxpayer’s net investment in the conversion transaction for the period ending on the date of such disposition or other termination (or, if earlier, the date on which the requirements of subsection (c) ceased to be satisfied) at a rate equal to 120 percent of the applicable rate, reduced by
(2) the amount treated as ordinary income under subsection (a) with respect to any prior disposition or other termination of a position which was held as a part of such transaction.
The Secretary shall by regulations provide for such reductions in the applicable imputed income amount as may be appropriate by reason of amounts capitalized under section 263(g), ordinary income received, or otherwise.
**(c) Conversion transaction** For purposes of this section, the term “conversion transaction” means any transaction—
(1) substantially all of the taxpayer’s expected return from which is attributable to the time value of the taxpayer’s net investment in such transaction, and
(2) which is—
(A) the holding of any property (whether or not actively traded), and the entering into a contract to sell
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 1258
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Federal law — U.S. Code and appendices · legal_authorities
Page 2376
TITLE 26—INTERNAL REVENUE CODE
§ 1257
‘‘(2) each regulated futures contract held by the
taxpayer on the first day of the taxable year de-
scribed in subsection (a)(1), and the date such con-
tract was acquired,
‘‘(3) the fair market value on the last business day
of the preceding taxable year for each regulated fu-
tures contract described in paragraph (2), and
‘‘(4) such other information for purposes of carrying
out the provisions of this section as may be required
by such regulations.’’
§ 1257. Disposition of converted wetlands or
highly erodible croplands
(a) Gain treated as ordinary income
Any gain on the disposition of converted wet-
land or highly erodible cropland shall be treated
as ordinary income. Such gain shall be recog-
nized notwithstanding any other provision of
this subtitle, except that this section shall not
apply to the extent such gain is recognized as
ordinary income under any other provision of
this part.
(b) Loss treated as long-term capital loss
Any loss recognized on the disposition of con-
verted wetland or highly erodible cropland shall
be treated as a long-term capital loss.
(c) Definitions
For purposes of this section—
(1) Converted wetland
The term ‘‘converted wetland’’ means any
converted wetland (as defined in section
1201(a)(7) of the Food Security Act of 1985 (16
U.S.C. 3801(7))) held—
(A) by the person whose activities resulted
in such land being converted wetland, or
(B) by any other person who at any time
used such land for farming purposes.
(2) Highly erodible cropland
The term ‘‘highly erodible cropland’’ means
any highly erodible cropland (as defined in
section 1201(a)(10) of the Food Security Act of
1985 (16 U.S.C. 3801(10))), if at any time the tax-
payer used such land for farming purpo
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 1258
Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 1258. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) In general**
(1) **Deduction for losses disallowed** — No deduction shall be allowed in respect of any loss from the sale or exchange of property, directly or indirectly, between persons specified in any of the paragraphs of subsection (b). The preceding sentence shall not apply to any loss of the distributing corporation (or the distributee) in the case of a distribution in complete liquidation.
(2) **Matching of deduction and payee income item in the case of expenses and interest** — If—
(A) by reason of the method of accounting of the person to whom the payment is to be made, the amount thereof is not (unless paid) includible in the gross income of such person, and
(B) at the close of the taxable year of the taxpayer for which (but for this paragraph) the amount would be deductible under this chapter, both the taxpayer and the person to whom the payment is to be made are persons specified in any of the paragraphs of subsection (b),
then any deduction allowable under this chapter in respect of such amount shall be allowable as of the day as of which such amount is includible in the gross income of the person to whom the payment is made (or, if later, as of the day on which it would be so allowable but for this paragraph). For purposes of this paragraph, in the case of a personal service corporation (within the meaning of section 441(i)(2)), such corporation and any employee-owner (within the meaning of section 269A(b)(2), as modified by section 441(i)(2)) shall be treated as persons specified in subsection (b).
(3) **Payments to foreign persons**
(A) *In general* — The Secretary shall by regulations apply the matching principle of paragraph (2) in cases in which the person to whom the payment is to be made is not a United States person.
(B) *Spe
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 267
Stored review status: release_metadata_unconfirmed. The source passage cites 26 U.S.C. § 267. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 1018
TITLE 26—INTERNAL REVENUE CODE
§ 266
‘‘(O) Minneapolis, Minnesota, Miller Milling Com-
pany—flour mill project.
‘‘(P) Homewood, Alabama, the Club Apartments.
‘‘(Q) Charlotte, North Carolina—qualified mortgage
bonds acquired by NCNB bank ($5,250,000).
‘‘(R) Grand Rapids, Michigan, Central Bank project.
‘‘(S) Ruppman Marketing Services, Inc.—building
project.
‘‘(T) Bellows Falls, Vermont—building project.
‘‘(U) East Broadway Project, Louisville, Kentucky.
‘‘(V) O.K. Industries, Oklahoma.
‘‘(4) ADDITIONAL
TRANSITIONAL
RULE.—Obligations
issued pursuant to an allocation of a State’s volume
limitation for private activity bonds, which allocation
was made by Executive Order 25 signed by the Governor
of the State on May 22, 1986 (as such order may be
amended before January 1, 1987), and qualified 501(c)(3)
bonds designated by such Governor for purposes of this
paragraph, shall be treated as acquired on or before Au-
gust 7, 1986, in the hands of the first and any subse-
quent financial institution acquiring such obligation.
The aggregate face amount of obligations to which this
paragraph applies shall not exceed $200,000,000.’’
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by section 16(a) of Pub. L. 98–369 applica-
ble to taxable years ending after Dec. 31, 1983, see sec-
tion 18(a) of Pub. L. 98–369, set out as a note under sec-
tion 48 of this title.
Amendment by section 56(c) of Pub. L. 98–369 applica-
ble to short sales after July 18, 1984, in taxable years
ending after that date, see section 56(d) of Pub. L.
98–369, set out as a note under section 163 of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Pub. L. 97–34, title III, § 301(d), Aug. 13, 1981, 95 Stat.
270, provided that:
‘‘(1) IN GENERAL.—Except as provided in paragraph
(2), the am
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 267
Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 267. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** Except as otherwise provided in this section, income from an installment sale shall be taken into account for purposes of this title under the installment method.
**(b) Installment sale defined** For purposes of this section—
(1) **In general** — The term “installment sale” means a disposition of property where at least 1 payment is to be received after the close of the taxable year in which the disposition occurs.
(2) **Exceptions** — The term “installment sale” does not include—
(A) *Dealer dispositions* — Any dealer disposition (as defined in subsection (l)).
(B) *Inventories of personal property* — A disposition of personal property of a kind which is required to be included in the inventory of the taxpayer if on hand at the close of the taxable year.
**(c) Installment method defined** For purposes of this section, the term “installment method” means a method under which the income recognized for any taxable year from a disposition is that proportion of the payments received in that year which the gross profit (realized or to be realized when payment is completed) bears to the total contract price.
**(d) Election out**
(1) **In general** — Subsection (a) shall not apply to any disposition if the taxpayer elects to have subsection (a) not apply to such disposition.
(2) **Time and manner for making election** — Except as otherwise provided by regulations, an election under paragraph (1) with respect to a disposition may be made only on or before the due date prescribed by law (including extensions) for filing the taxpayer’s return of the tax imposed by this chapter for the taxable year in which the disposition occurs. Such an election shall be made in the manner prescribed by regulations.
(3) **Election revocable only with consent**
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 453
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Federal law — U.S. Code and appendices · legal_authorities
Page 1568
TITLE 26—INTERNAL REVENUE CODE
[§ 452
rulings, and judicial decisions relating to deferred com-
pensation which were in effect on February 1, 1978.
‘‘(b) PRIVATE
DEFERRED
COMPENSATION
PLAN
DE-
FINED.—
‘‘(1) IN GENERAL.—For purposes of this section, the
term ‘private deferred compensation plan’ means a
plan, agreement, or arrangement—
‘‘(A) where the person for whom the service is
performed is not a State (within the meaning of
paragraph (1) of section 457(d) of the Internal Rev-
enue Code of 1986 [formerly I.R.C. 1954]) and not an
organization which is exempt from tax under sec-
tion 501 of such Code, and
‘‘(B) under which the payment or otherwise mak-
ing available of compensation is deferred.
‘‘(2) CERTAIN PLANS EXCLUDED.—Paragraph (1) shall
not apply to—
‘‘(A) a plan described in section 401(a) of the In-
ternal Revenue Code of 1986 which includes a trust,
exempt from tax under section 501(a) of such Code,
‘‘(B) an annuity plan or contract described in sec-
tion 403 of such Code,
‘‘(C) a qualified bond purchase plan described in
section 405(a) of such Code,
‘‘(D) that portion of any plan which consists of a
transfer of property described in section 83 (deter-
mined without regard to subsection (e) thereof of
such Code, and
‘‘(E) that portion of any plan which consists of a
trust to which section 402(b) of such Code applies.
‘‘(c) EFFECTIVE DATE.—This section shall apply to
taxable years ending on or after February 1, 1978.’’
YEAR OF INCLUSION FOR DISASTER OR DEFICIENCY
PAYMENTS RECEIVED IN 1978; ELECTION
Pub. L. 95–258, § 1, Apr. 7, 1978, 92 Stat. 195, provided
that:
‘‘(a) IN GENERAL.—In the case of a taxpayer reporting
on the cash receipts and disbursements method of ac-
counting, if—
‘‘(1)(A) the taxpayer receives in his first tax
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 453
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Arkansas Code — all titles (historical 2020) · legal_authorities
26-51-101. Title.
This act shall be known and may be cited as the “Income Tax Act of 1929”.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-101
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. The source passage cites 26-51-101. This identifies an authority to review, not proof of applicability.