Browse Arkansas Code titles and sections
26-51-431. Items not deductible in net income computation.
Arkansas Code — all titles (historical 2020) · legal_authorities
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 any payments of alimony made by an individual pursuant to a court order shall be deductible;
(2) Any amount paid for new buildings or for permanent improvements or betterments made to increase the value of any property or estate;
(3) Any amount expended in restoring property for which an allowance is to be made;
(4) Premiums paid on life insurance policies; and
(5) Shrinkage in value of property.
(b) Title 26 U.S.C. § 265(a), as in effect on January 1, 1993, regarding expenses and interest relating to tax-exempt income, is hereby adopted for the purpose of computing Arkansas individual income tax liability.
(c) For the purpose of computing Arkansas corporation income tax liability, no deduction shall be allowed for:
(1) Expenses otherwise allowable as deductions which are allocable to income other than interest, whether or not any amount of income is received or accrued, wholly exempt from the taxes authorized by Arkansas law;
(2) Interest on indebtedness incurred or continued to purchase or carry obligations the interest on which is wholly exempt from the taxes imposed by Arkansas law; and
(3) Expenses otherwise allowable as deductions which are allocable to nonbusiness income.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-431
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.
Issuing source page ↗
Authority boundary: historical statutory source snapshot not current law.
Open the recorded source website ↗
Record provenance
Stable record: arkansas_code:legal_authorities:26-51-431
Source file: gov.ar.code.title.26.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 60d6e5ddc29e9900d7b6970dceeca71837d764148c1ddc88af3fa56c719fbee6
Source location: content.xml paragraph 12901
Stored source content
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 any payments of alimony made by an individual pursuant to a court order shall be deductible;
(2) Any amount paid for new buildings or for permanent improvements or betterments made to increase the value of any property or estate;
(3) Any amount expended in restoring property for which an allowance is to be made;
(4) Premiums paid on life insurance policies; and
(5) Shrinkage in value of property.
(b) Title 26 U.S.C. § 265(a), as in effect on January 1, 1993, regarding expenses and interest relating to tax-exempt income, is hereby adopted for the purpose of computing Arkansas individual income tax liability.
(c) For the purpose of computing Arkansas corporation income tax liability, no deduction shall be allowed for:
(1) Expenses otherwise allowable as deductions which are allocable to income other than interest, whether or not any amount of income is received or accrued, wholly exempt from the taxes authorized by Arkansas law;
(2) Interest on indebtedness incurred or continued to purchase or carry obligations the interest on which is wholly exempt from the taxes imposed by Arkansas law; and
(3) Expenses otherwise allowable as deductions which are allocable to nonbusiness income.
Cross-references
Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.
Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** No deduction shall be allowed for—
(1) **Expenses** — Any amount otherwise allowable as a deduction which is allocable to one or more classes of income other than interest (whether or not any amount of income of that class or classes is received or accrued) wholly exempt from the taxes imposed by this subtitle, or any amount otherwise allowable under section 212 (relating to expenses for production of income) which is allocable to interest (whether or not any amount of such interest is received or accrued) wholly exempt from the taxes imposed by this subtitle.
(2) **Interest** — Interest on indebtedness incurred or continued to purchase or carry obligations the interest on which is wholly exempt from the taxes imposed by this subtitle.
(3) **Certain regulated investment companies** — In the case of a regulated investment company which distributes during the taxable year an exempt-interest dividend (including exempt-interest dividends paid after the close of the taxable year as described in section 855), that portion of any amount otherwise allowable as a deduction which the amount of the income of such company wholly exempt from taxes under this subtitle bears to the total of such exempt income and its gross income (excluding from gross income, for this purpose, capital gain net income, as defined in section 1222(9)).
(4) **Interest related to exempt-interest dividends** — Interest on indebtedness incurred or continued to purchase or carry shares of stock of a regulated investment company which during the taxable year of the holder thereof distributes exempt-interest dividends.
(5) **Special rules for application of paragraph (2) in the case of short sales** — For purposes of paragraph (2)—
(A) *In general* — The term “interest” includes any
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 265
Stored review status: release_metadata_unconfirmed. The source passage cites 26 U.S.C. § 265. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 1013
TITLE 26—INTERNAL REVENUE CODE
§ 265
‘‘(I) The rate of interest specified under the
terms of the indebtedness as in effect on October
13, 1995 (and without regard to modification of
such terms after such date).
‘‘(II) The applicable percentage of the rate of in-
terest described as Moody’s Corporate Bond Yield
Average-Monthly Average Corporates as pub-
lished by Moody’s Investors Service, Inc., or any
successor thereto, for such month.
For purposes of clause (i), all persons treated as a sin-
gle employer under subsection (a) or (b) of section 52
of the Internal Revenue Code of 1986 or subsection (m)
or (o) of section 414 of such Code shall be treated as
1 person. Subclause (II) of clause (ii) shall not apply
to any month before January 1, 1996.
‘‘(C) APPLICABLE PERCENTAGE.—For purposes of sub-
paragraph (B), the applicable percentage is as follows:
For calendar year:
The percentage is:
1996 .........................................................
100 percent
1997 .........................................................
90 percent
1998 .........................................................
80 percent.’’
EFFECTIVE DATE OF 1986 AMENDMENT
Pub. L. 99–514, title X, § 1003(c), Oct. 22, 1986, 100 Stat.
2388, provided that: ‘‘The amendments made by this
section [amending this section] shall apply to contracts
purchased after June 20, 1986, in taxable years ending
after such date.’’
EFFECTIVE DATE OF 1964 AMENDMENT
Pub. L. 88–272, title II, § 215(c), Feb. 26, 1964, 78 Stat.
56, provided that: ‘‘The amendments made by this sec-
tion [amending this section] shall apply with respect to
amounts paid or accrued in taxable years beginning
after December 31, 1963.’’
SPREAD OF INCOME INCLUSION ON SURRENDER, ETC. OF
CONTRACTS
Pub. L. 104–191, title
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 265
Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 265. This identifies an authority to review, not proof of applicability.