Browse Arkansas Code titles and sections
26-51-424. Deductions — Losses.
Arkansas Code — all titles (historical 2020) · legal_authorities
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 by insurance or otherwise.
(2) In the case of an individual, the deduction under subdivision (a)(1) of this section shall be limited to:
(A) Losses incurred in a trade or business; or
(B) Losses incurred in any transaction entered into for profit, though not connected with the trade or business, including without limitation gambling losses, which are:
(i) Deductible to the extent of gambling winnings; and
(ii) Not subject to the two percent (2%) limitation on miscellaneous itemized deductions.
(b) Title 26 U.S.C. § 165(h) and (i), as in effect on January 1, 2009, regarding losses arising from a casualty or a disaster, are adopted for the purpose of computing Arkansas income tax liability.
(c) Title 26 U.S.C. § 183, as in effect on January 1, 1999, regarding hobby losses, is adopted for the purpose of computing Arkansas income tax liability.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-424
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:26-51-424
Source file: gov.ar.code.title.26.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 2635c096bd583a6b9da8d5149c7520fe03757091569c4065469e5c21eab69c1e
Source location: content.xml paragraph 12706
Stored source content
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 by insurance or otherwise.
(2) In the case of an individual, the deduction under subdivision (a)(1) of this section shall be limited to:
(A) Losses incurred in a trade or business; or
(B) Losses incurred in any transaction entered into for profit, though not connected with the trade or business, including without limitation gambling losses, which are:
(i) Deductible to the extent of gambling winnings; and
(ii) Not subject to the two percent (2%) limitation on miscellaneous itemized deductions.
(b) Title 26 U.S.C. § 165(h) and (i), as in effect on January 1, 2009, regarding losses arising from a casualty or a disaster, are adopted for the purpose of computing Arkansas income tax liability.
(c) Title 26 U.S.C. § 183, as in effect on January 1, 1999, regarding hobby losses, 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) General rule** There shall be allowed as a deduction any loss sustained during the taxable year and not compensated for by insurance or otherwise.
**(b) Amount of deduction** For purposes of subsection (a), the basis for determining the amount of the deduction for any loss shall be the adjusted basis provided in section 1011 for determining the loss from the sale or other disposition of property.
**(c) Limitation on losses of individuals** In the case of an individual, the deduction under subsection (a) shall be limited to—
(1) losses incurred in a trade or business;
(2) losses incurred in any transaction entered into for profit, though not connected with a trade or business; and
(3) except as provided in subsection (h), losses of property not connected with a trade or business or a transaction entered into for profit, if such losses arise from fire, storm, shipwreck, or other casualty, or from theft.
**(d) Wagering losses**
(1) **In general** — For purposes of losses from wagering transactions, the amount allowed as a deduction for any taxable year—
(A) shall be equal to 90 percent of the amount of such losses during such taxable year, and
(B) shall be allowed only to the extent of the gains from such transactions during such taxable year.
(2) **Special rule** — For purposes of paragraph (1), the term “losses from wagering transactions” includes any deduction otherwise allowable under this chapter incurred in carrying on any wagering transaction.
**(e) Theft losses** For purposes of subsection (a), any loss arising from theft shall be treated as sustained during the taxable year in which the taxpayer discovers such loss.
**(f) Capital losses** Losses from sales or exchanges of capital assets shall be allowed only to the extent allowed in sections
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 165
Stored review status: release_metadata_unconfirmed. The source passage cites 26 U.S.C. § 165. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 763
TITLE 26—INTERNAL REVENUE CODE
§ 165
section [amending this section] shall apply to taxable
years beginning after December 31, 2003.’’
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100–647 effective, except as
otherwise provided, as if included in the provision of
the Tax Reform Act of 1986, Pub. L. 99–514, to which
such amendment relates, see section 1019(a) of Pub. L.
100–647, set out as a note under section 1 of this title.
Pub. L. 100–418, title I, § 1941(c), Aug. 23, 1988, 102 Stat.
1324, provided that: ‘‘The amendments made by this
section [amending this section and sections 193, 291,
6161, 6211, 6212, 6213, 6214, 6302, 6344, 6501, 6511, 6512, 6611,
6654, 6655, 6724, 6862, 7422, and 7512 of this title, and re-
pealing sections 280D, 4986 to 4998, 6050C, 6076, 6232, 6429,
6430, and 7241 of this title] shall apply to crude oil re-
moved from the premises on or after the date of the en-
actment of this Act [Aug. 23, 1988].’’
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by section 134 of Pub. L. 99–514 applicable
to taxable years beginning after Dec. 31, 1986, see sec-
tion 151(a) of Pub. L. 99–514, set out as a note under sec-
tion 1 of this title.
Amendment by section 1432(a)(1), (2) of Pub. L. 99–514
applicable to generation-skipping transfers (within the
meaning of section 2611 of this title) made after Oct. 22,
1986, except as otherwise provided, see section 1433 of
Pub. L. 99–514, set out as an Effective Date note under
section 2601 of this title.
Amendment by Pub. L. 99–499 applicable to taxable
years beginning after Dec. 31, 1986, see section 516(c) of
Pub. L. 99–499, set out as a note under section 26 of this
title.
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98–369 not applicable with re-
spect to obligation
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 165
Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 165. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** In the case of an activity engaged in by an individual or an S corporation, if such activity is not engaged in for profit, no deduction attributable to such activity shall be allowed under this chapter except as provided in this section.
**(b) Deductions allowable** In the case of an activity not engaged in for profit to which subsection (a) applies, there shall be allowed—
(1) the deductions which would be allowable under this chapter for the taxable year without regard to whether or not such activity is engaged in for profit, and
(2) a deduction equal to the amount of the deductions which would be allowable under this chapter for the taxable year only if such activity were engaged in for profit, but only to the extent that the gross income derived from such activity for the taxable year exceeds the deductions allowable by reason of paragraph (1).
**(c) Activity not engaged in for profit defined** For purposes of this section, the term “activity not engaged in for profit” means any activity other than one with respect to which deductions are allowable for the taxable year under section 162 or under paragraph (1) or (2) of section 212.
**(d) Presumption** If the gross income derived from an activity for 3 or more of the taxable years in the period of 5 consecutive taxable years which ends with the taxable year exceeds the deductions attributable to such activity (determined without regard to whether or not such activity is engaged in for profit), then, unless the Secretary establishes to the contrary, such activity shall be presumed for purposes of this chapter for such taxable year to be an activity engaged in for profit. In the case of an activity which consists in major part of the breeding, training, showing, or racing of horses, the preced
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 183
Stored review status: release_metadata_unconfirmed. The source passage cites 26 U.S.C. § 183. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 912
TITLE 26—INTERNAL REVENUE CODE
[§ 182
apply to productions commencing after December 31,
2015.
‘‘(B) COMMENCEMENT.—For purposes of subpara-
graph (A), the date on which a qualified live theat-
rical production commences is the date of the first
public performance of such production for a paying
audience.’’
EFFECTIVE DATE OF 2014 AMENDMENT
Pub. L. 113–295, div. A, title I, § 129(b), Dec. 19, 2014, 128
Stat. 4018, provided that: ‘‘The amendment made by
this section [amending this section] shall apply to pro-
ductions commencing after December 31, 2013.’’
EFFECTIVE DATE OF 2013 AMENDMENT
Pub. L. 112–240, title III, § 317(b), Jan. 2, 2013, 126 Stat.
2331, provided that: ‘‘The amendment made by this sec-
tion [amending this section] shall apply to productions
commencing after December 31, 2011.’’
EFFECTIVE DATE OF 2010 AMENDMENT
Pub. L. 111–312, title VII, § 744(b), Dec. 17, 2010, 124
Stat. 3319, provided that: ‘‘The amendment made by
this section [amending this section] shall apply to pro-
ductions commencing after December 31, 2009.’’
EFFECTIVE DATE OF 2008 AMENDMENT
Pub. L. 110–343, div. C, title V, § 502(e), Oct. 3, 2008, 122
Stat. 3877, provided that:
‘‘(1) IN
GENERAL.—Except as otherwise provided in
this subsection, the amendments made by this section
[amending this section and section 199 of this title]
shall apply to qualified film and television productions
commencing after December 31, 2007.
‘‘(2) DEDUCTION.—The amendments made by sub-
section (c) [amending section 199 of this title] shall
apply to taxable years beginning after December 31,
2007.’’
EFFECTIVE DATE OF 2005 AMENDMENT
Amendment by Pub. L. 109–135 effective as if included
in the provision of the American Jobs Creation Act of
2004, Pub. L. 108–357, to which such amendme
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 183
Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 183. This identifies an authority to review, not proof of applicability.