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26-51-428. Depreciation — Deductions — Expensing of property. [Effective until contingency in Acts 2007, No. 613, § 2 is met.]
Arkansas Code — all titles (historical 2020) · legal_authorities
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, 2019, and 26 U.S.C. § 179, as in effect on January 1, 2009, regarding depreciation and expensing of property, are adopted for the purpose of computing Arkansas income tax liability for property purchased in tax years beginning on or after January 1, 2014.
(b) The basis on which exhaustion, wear and tear, and obsolescence are to be allowed in respect to any property shall be the adjusted basis provided in § 26-51-411 for the purpose of determining the gain on the sale or other disposition of the property.
(c) Title 26 U.S.C. § 197, as in effect on January 1, 2007, regarding the amortization of goodwill and certain other intangibles, is adopted for the purpose of computing Arkansas income tax liability.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-428
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:26-51-428
Source file: gov.ar.code.title.26.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 6069a35ae3933840c354dc133c853ccbc7467b187946b91121076dc18d1b18b7
Source location: content.xml paragraph 12820
Stored source content
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, 2019, and 26 U.S.C. § 179, as in effect on January 1, 2009, regarding depreciation and expensing of property, are adopted for the purpose of computing Arkansas income tax liability for property purchased in tax years beginning on or after January 1, 2014.
(b) The basis on which exhaustion, wear and tear, and obsolescence are to be allowed in respect to any property shall be the adjusted basis provided in § 26-51-411 for the purpose of determining the gain on the sale or other disposition of the property.
(c) Title 26 U.S.C. § 197, as in effect on January 1, 2007, regarding the amortization of goodwill and certain other intangibles, 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 depreciation deduction a reasonable allowance for the exhaustion, wear and tear (including a reasonable allowance for obsolescence)—
(1) of property used in the trade or business, or
(2) of property held for the production of income.
**(b) Cross reference** For determination of depreciation deduction in case of property to which section 168 applies, see section 168.
**(c) Basis for depreciation**
(1) **In general** — The basis on which exhaustion, wear and tear, and obsolescence are to be allowed in respect of any property shall be the adjusted basis provided in section 1011, for the purpose of determining the gain on the sale or other disposition of such property.
(2) **Special rule for property subject to lease** — If any property is acquired subject to a lease—
(A) no portion of the adjusted basis shall be allocated to the leasehold interest, and
(B) the entire adjusted basis shall be taken into account in determining the depreciation deduction (if any) with respect to the property subject to the lease.
**(d) Life tenants and beneficiaries of trusts and estates** In the case of property held by one person for life with remainder to another person, the deduction shall be computed as if the life tenant were the absolute owner of the property and shall be allowed to the life tenant. In the case of property held in trust, the allowable deduction shall be apportioned between the income beneficiaries and the trustee in accordance with the pertinent provisions of the instrument creating the trust, or, in the absence of such provisions, on the basis of the trust income allocable to each. In the case of an estate, the allowable deduction shall be apportioned between the estate and the heirs, legatees, and devisees
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 167
Stored review status: release_metadata_unconfirmed. The source passage cites 26 U.S.C. § 167. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 774
TITLE 26—INTERNAL REVENUE CODE
§ 167
EFFECTIVE DATE OF 1969 AMENDMENT
Amendment by Pub. L. 91–172 applicable to taxable
years beginning after July 11, 1969, see section 431(d) of
Pub. L. 91–172, set out as an Effective Date note under
section 585 of this title.
EFFECTIVE DATE OF 1966 AMENDMENT
Pub. L. 89–722, § 2, Nov. 2, 1966, 80 Stat. 1152, as amend-
ed by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, pro-
vided that:
‘‘(a) Except as provided in subsections (b) and (c), the
amendments made by the first section of this Act
[amending this section and section 81 of this title] shall
apply to taxable years ending after October 21, 1965.
‘‘(b) If—
‘‘(1) the taxpayer before October 22, 1965, claimed a
deduction, for a taxable year ending before such date,
under section 166(c) of the Internal Revenue Code of
1986 [formerly I.R.C. 1954] for an addition to a reserve
for bad debts on account of debt obligations described
in section 166(g)(1)(A) of such Code (as amended by
the first section of this Act), and
‘‘(2) the assessment of a deficiency of the tax im-
posed by chapter 1 of such Code for such taxable year
and each subsequent taxable year ending before Octo-
ber 22, 1965, is not prevented on December 31, 1966, by
the operation of any law or rule of law,
then such deduction on account of such debt obliga-
tions shall be allowed for each such taxable year under
such section 166(c) to the extent that the deduction
would have been allowable under the provisions of such
section 166(g)(1)(A) if such provisions applied to such
taxable years.
‘‘(c) Section 166(g)(2) of the Internal Revenue Code of
1986 (as amended by the first section of this Act) shall
apply to taxable years beginning after December 31,
1953, and ending after August 16,
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 167
Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 167. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Treatment as expenses** A taxpayer may elect to treat the cost of any section 179 property as an expense which is not chargeable to capital account. Any cost so treated shall be allowed as a deduction for the taxable year in which the section 179 property is placed in service.
**(b) Limitations**
(1) **Dollar limitation** — The aggregate cost which may be taken into account under subsection (a) for any taxable year shall not exceed $2,500,000.
(2) **Reduction in limitation** — The limitation under paragraph (1) for any taxable year shall be reduced (but not below zero) by the amount by which the cost of section 179 property placed in service during such taxable year exceeds $4,000,000.
(3) **Limitation based on income from trade or business**
(A) *In general* — The amount allowed as a deduction under subsection (a) for any taxable year (determined after the application of paragraphs (1) and (2)) shall not exceed the aggregate amount of taxable income of the taxpayer for such taxable year which is derived from the active conduct by the taxpayer of any trade or business during such taxable year.
(B) *Carryover of disallowed deduction* — The amount allowable as a deduction under subsection (a) for any taxable year shall be increased by the lesser of—
(i) the aggregate amount disallowed under subparagraph (A) for all prior taxable years (to the extent not previously allowed as a deduction by reason of this subparagraph), or
(ii) the excess (if any) of—
(I) the limitation of paragraphs (1) and (2) (or if lesser, the aggregate amount of taxable income referred to in subparagraph (A)), over
(II) the amount allowable as a deduction under subsection (a) for such taxable year without regard to this subparagraph.
(C) *Computation of taxab
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 179
Stored review status: release_metadata_unconfirmed. The source passage cites 26 U.S.C. § 179. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 895
TITLE 26—INTERNAL REVENUE CODE
§ 179
extent not compensated for) paid or incurred
pursuant to an agreement entered into under
section 3121(l) with respect to services performed
by United States citizens employed by foreign
subsidiary corporations. Any reimbursement of
any amount previously allowed as a deduction
under this section shall be included in gross in-
come for the taxable year in which received.
(Added Sept. 1, 1954, ch. 1206, title II, § 210(a), 68
Stat. 1096.)
[§ 177. Repealed. Pub. L. 99–514, title II, § 241(a),
Oct. 22, 1986, 100 Stat. 2181]
Section, added June 29, 1956, ch. 464, § 4(a), 70 Stat.
406; amended Oct. 4, 1976, Pub. L. 94–455, title XIX,
§ 1906(b)(13)(A), 90 Stat. 1834, related to deductions for
trademark and trade name expenditures.
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF REPEAL
Pub. L. 99–514, title II, § 241(c), Oct. 22, 1986, 100 Stat.
2181, provided that:
‘‘(1) IN GENERAL.—Except as provided in paragraph (2),
the amendments made by this section [amending sec-
tions 312 and 1016 of this title and repealing this sec-
tion] shall apply to expenditures paid or incurred after
December 31, 1986.
‘‘(2) TRANSITIONAL RULE.—The amendments made by
this section shall not apply to any expenditure in-
curred—
‘‘(A) pursuant to a binding contract entered into
before March 2, 1986, or
‘‘(B) with respect to the development, protection,
expansion, registration, or defense of a trademark or
trade name commenced before March 2, 1986, but only
if not less than the lesser of $1,000,000 or 5 percent of
the aggregate cost of such development, protection,
expansion, registration, or defense has been incurred
or committed before such date.
The preceding sentence shall not apply to any expendi-
ture with res
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 179
Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 179. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** A taxpayer shall be entitled to an amortization deduction with respect to any amortizable section 197 intangible. The amount of such deduction shall be determined by amortizing the adjusted basis (for purposes of determining gain) of such intangible ratably over the 15-year period beginning with the month in which such intangible was acquired.
**(b) No other depreciation or amortization deduction allowable** Except as provided in subsection (a), no depreciation or amortization deduction shall be allowable with respect to any amortizable section 197 intangible.
**(c) Amortizable section 197 intangible** For purposes of this section—
(1) **In general** — Except as otherwise provided in this section, the term “amortizable section 197 intangible” means any section 197 intangible—
(A) which is acquired by the taxpayer after the date of the enactment of this section, and
(B) which is held in connection with the conduct of a trade or business or an activity described in section 212.
(2) **Exclusion of self-created intangibles, etc.** — The term “amortizable section 197 intangible” shall not include any section 197 intangible—
(A) which is not described in subparagraph (D), (E), or (F) of subsection (d)(1), and
(B) which is created by the taxpayer.
This paragraph shall not apply if the intangible is created in connection with a transaction (or series of related transactions) involving the acquisition of assets constituting a trade or business or substantial portion thereof.
(3) **Anti-churning rules** — For exclusion of intangibles acquired in certain transactions, see subsection (f)(9).
**(d) Section 197 intangible** For purposes of this section—
(1) **In general** — Except as otherwise provided in this section, the term “section 197 i
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 197
Stored review status: release_metadata_unconfirmed. The source passage cites 26 U.S.C. § 197. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 924
TITLE 26—INTERNAL REVENUE CODE
§ 197
§ 197. Amortization of goodwill and certain other
intangibles
(a) General rule
A taxpayer shall be entitled to an amortiza-
tion deduction with respect to any amortizable
section 197 intangible. The amount of such de-
duction shall be determined by amortizing the
adjusted basis (for purposes of determining gain)
of such intangible ratably over the 15-year pe-
riod beginning with the month in which such in-
tangible was acquired.
(b) No other depreciation or amortization deduc-
tion allowable
Except as provided in subsection (a), no depre-
ciation or amortization deduction shall be al-
lowable with respect to any amortizable section
197 intangible.
(c) Amortizable section 197 intangible
For purposes of this section—
(1) In general
Except as otherwise provided in this section,
the term ‘‘amortizable section 197 intangible’’
means any section 197 intangible—
(A) which is acquired by the taxpayer after
the date of the enactment of this section,
and
(B) which is held in connection with the
conduct of a trade or business or an activity
described in section 212.
(2) Exclusion of self-created intangibles, etc.
The term ‘‘amortizable section 197 intan-
gible’’ shall not include any section 197 intan-
gible—
(A) which is not described in subparagraph
(D), (E), or (F) of subsection (d)(1), and
(B) which is created by the taxpayer.
This paragraph shall not apply if the intan-
gible is created in connection with a trans-
action (or series of related transactions) in-
volving the acquisition of assets constituting
a trade or business or substantial portion
thereof.
(3) Anti-churning rules
For exclusion of intangibles acquired in certain
transactions, see subsection (f)(9).
(d) Section 197 intangible
For purpo
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 197
Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 197. This identifies an authority to review, not proof of applicability.
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
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 26-51-411. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-51-428. Depreciation — Deductions — Expensing of property. [Effective if contingency in Acts 2007, No. 613, § 2 is met.]
(a) Title 26 U.S.C. §§ 167, 168, and 179A, as in effect on January 1, 1999, and 26 U.S.C. § 179 as in effect on January 1, 2007, regarding depreciation and expensing of property, are adopted for the purpose of computing Arkansas income tax liability.
(b) The basis on which exhaustion, wear and tear, and obsolescence are to be allowed in respect to any property shall be the adjusted basis provided in § 26-51-411 for the purpose of determining the gain on the sale or other disposition of the property.
(c) Title 26 U.S.C. § 197, as in effect on January 1, 2007, regarding the amortization of goodwill and certain other intangibles, is adopted for the purpose of computing Arkansas income tax liability.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-428
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. Same stored citation; legal effect and authority still require review.