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26-51-440. Federal Subchapter M adopted — Definition.

Arkansas Code — all titles (historical 2020) · legal_authorities

26-51-440. Federal Subchapter M adopted — Definition.

Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-440

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Stable record: arkansas_code:legal_authorities:26-51-440
Source file: gov.ar.code.title.26.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 4be6d24462445eec77ae45e11616905564204c4bd6512f9326d2dbfb48927c7d

Source location: content.xml paragraph 12998

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26-51-440. Federal Subchapter M adopted — Definition. (a)(1) Subchapter M of the Internal Revenue Code, 26 U.S.C. § 851 et seq., as in effect on January 1, 2019, relating to regulated investment companies, real estate investment trusts, real estate mortgage investment conduits, and financial asset securitization investment trusts, is adopted for the purpose of computing Arkansas income tax liability and shall govern all corporations that are registered as investment companies under the Investment Company Act of 1940, 15 U.S.C. § 80a-1 et seq., as in effect on January 1, 2019. (2)(A) However, those provisions of Subchapter M of the Internal Revenue Code, 26 U.S.C. § 851 et seq., addressing the tax rates applied to financial asset securitization investment trust income are not adopted. (B) Any financial asset securitization investment trust income subject to Arkansas income tax shall be taxed at the rates set forth in § 26-51-205. (b) As used in this section: (1)(A) “Captive real estate investment trust” means a real estate investment trust the shares or beneficial interests of which are not regularly traded on an established securities market and more than fifty percent (50%) of the voting power or value of the beneficial interests or shares of which are owned or controlled, directly, indirectly, or constructively by a single entity that is: (i) Treated as an association taxable as a corporation under the Internal Revenue Code, 26 U.S.C. § 1 et seq., as in effect on January 1, 2009; and (ii) Not exempt from federal income tax under 26 U.S.C. § 501(a), as in effect on January 1, 2009. (B) “Captive real estate investment trust” does not include a real estate investment trust that is intended to be regularly traded on an established securities market and that satisfies the requirements of 26 U.S.C. § 856(a)(5) and (6), as in effect on January 1, 2009, by reason of 26 U.S.C. § 856(h)(2), as in effect on January 1, 2009; and (2) “Real estate investment trust” means the same as defined in 26 U.S.C. § 856, as in effect on January 1, 2009. (c) For purposes of applying subdivision (b)(1)(A)(i) of this section, the following entities are not considered an association taxable as a corporation under the Internal Revenue Code, 26 U.S.C. § 1 et seq.: (1) A real estate investment trust other than a captive real estate investment trust; (2) A qualified real estate investment trust subsidiary under 26 U.S.C. § 856(i), as in effect on January 1, 2009, other than a qualified real estate investment trust subsidiary of a captive real estate investment trust; (3) A listed Australian Property Trust, meaning an Australian unit trust registered as a Managed Investment Scheme under the Australian Corporations Act 2001 in which the principal class of units is listed on a recognized stock exchange in Australia and is regularly traded on an established securities market, or an entity organized as a trust, provided that a listed Australian Property Trust owns or controls, directly or indirectly, seventy-five percent (75%) or more of the voting power or value of the beneficial interests or shares of such trust; or (4) A qualified Foreign Entity, meaning a corporation, trust, association, or partnership organized outside the laws of the United States and which satisfies the following criteria: (A) At least seventy-five percent (75%) of the entity's total asset value at the close of its taxable year is represented by real estate assets, as defined in 26 U.S.C. § 856(c)(5)(B), as in effect on January 1, 2009, including shares or certificates of beneficial interest in any real estate investment trust, cash and cash equivalents, and United States Government securities; (B) The entity is not subject to tax on amounts distributed to its beneficial owners or is exempt from entity-level taxation; (C) The entity distributes at least eighty-five percent (85%) of its taxable income, as computed in the jurisdiction in which it is organized, to the holders of its shares or certificates of beneficial interest on an annual basis; (D) More than ten percent (10%) of the voting power or value in the entity is not held directly, indirectly, or constructively by a single entity or individual, or the shares or beneficial interests of the entity are regularly traded on an established securities market; and (E) The entity is organized in a country that has a tax treaty with the United States. (d) The dividends-paid deduction otherwise allowed by federal law in computing net income of a real estate investment trust that is subject to federal income tax shall be added back in computing the tax imposed by the Income Tax Act of 1929, § 26-51-101 et seq., if the real estate investment trust is a captive real estate investment trust. (e)(1) A real estate investment trust that does not become regularly traded on an established securities market within one (1) year of the date on which it first became a real estate investment trust shall not be considered to have been regularly traded on an established securities market, retroactive to the date it first became a real estate investment trust, and the owner of the real estate investment trust shall file an amended return reflecting the retroactive designation for any tax year or part year occurring during its initial year of status as a real estate investment trust. (2) Under this section, a real estate investment trust becomes a real estate investment trust on the first day that it has: (A) Met the requirements of 26 U.S.C § 856 as in effect on January 1, 2009; and (B) Elected to be treated as a real estate investment trust under 26 U.S.C. § 856(c)(1), as in effect on January 1, 2009, by the owner of the real estate investment trust. (f) Under this section, the constructive ownership rules of 26 U.S.C. § 318(a), as in effect on January 1, 2009, as modified by 26 U.S.C. § 856(d)(5), as in effect on January 1, 2009, shall apply in determining the ownership of stock, assets, or net profits of a person. (g) An election made for federal income tax purposes under Subchapter M of the Internal Revenue Code, 26 U.S.C. § 851 et seq., as in effect on January 1, 2009, shall be deemed made for state income tax purposes. (h) This section shall take effect and be enforced for tax years beginning on or after January 1, 2009.

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Federal law — U.S. Code and appendices · legal_authorities

15 U.S.C. § 80a-1 — Findings and declaration of policy

Page 504 TITLE 15—COMMERCE AND TRADE § 80a–1 1 See References in Text note below. regulations approved and made effective prior to such date, see section 1274 of Pub. L. 109–58, set out as an Ef- fective Date note under section 16451 of Title 42, The Public Health and Welfare. CHAPTER 2D—INVESTMENT COMPANIES AND ADVISERS SUBCHAPTER I—INVESTMENT COMPANIES Sec. 80a–1. Findings and declaration of policy. 80a–2. Definitions; applicability; rulemaking consid- erations. 80a–3. Definition of investment company. 80a–3a. Protection of philanthropy under State law. 80a–4. Classification of investment companies. 80a–5. Subclassification of management companies. 80a–6. Exemptions. 80a–7. Transactions by unregistered investment companies. 80a–8. Registration of investment companies. 80a–9. Ineligibility of certain affiliated persons and underwriters. 80a–10. Affiliations or interest of directors, officers, and employees. 80a–11. Offers to exchange securities. 80a–12. Functions and activities of investment com- panies. 80a–13. Changes in investment policy. 80a–14. Size of investment companies. 80a–15. Contracts of advisers and underwriters. 80a–16. Board of directors. 80a–17. Transactions of certain affiliated persons and underwriters. 80a–18. Capital structure of investment companies. 80a–19. Payments or distributions. 80a–20. Proxies; voting trusts; circular ownership. 80a–21. Loans by management companies. 80a–22. Distribution, redemption, and repurchase of securities; regulations by securities asso- ciations. 80a–23. Closed-end companies. 80a–24. Registration of securities under Securities Act of 1933. 80a–25. Reorganization plans; reports by Commission. 80a–26. Unit investment trusts. 80a–27. Periodic payment

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Federal law — U.S. Code and appendices · legal_authorities

26 U.S.C. § 1 — Tax imposed

**(a) Married individuals filing joint returns and surviving spouses** There is hereby imposed on the taxable income of— (1) every married individual (as defined in section 7703) who makes a single return jointly with his spouse under section 6013, and (2) every surviving spouse (as defined in section 2(a)), a tax determined in accordance with the following table: If taxable income is:The tax is: Not over $36,90015% of taxable income. Over $36,900 but not over $89,150$5,535, plus 28% of the excess over $36,900. Over $89,150 but not over $140,000$20,165, plus 31% of the excess over $89,150. Over $140,000 but not over $250,000$35,928.50, plus 36% of the excess over $140,000. Over $250,000$75,528.50, plus 39.6% of the excess over $250,000. **(b) Heads of households** There is hereby imposed on the taxable income of every head of a household (as defined in section 2(b)) a tax determined in accordance with the following table: If taxable income is:The tax is: Not over $29,60015% of taxable income. Over $29,600 but not over $76,400$4,440, plus 28% of the excess over $29,600. Over $76,400 but not over $127,500$17,544, plus 31% of the excess over $76,400. Over $127,500 but not over $250,000$33,385, plus 36% of the excess over $127,500. Over $250,000$77,485, plus 39.6% of the excess over $250,000. **(c) Unmarried individuals (other than surviving spouses and heads of households)** There is hereby imposed on the taxable income of every individual (other than a surviving spouse as defined in section 2(a) or the head of a household as defined in section 2(b)) who is not a married individual (as defined in section 7703) a tax determined in accordance with the following table: If taxable income is:The tax is: Not over $22,10015% of taxable income. Over $22,100 but not over $53,50

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Federal law — U.S. Code and appendices · legal_authorities

26 U.S.C. § 1 — Tax imposed

Page 25 TITLE 26—INTERNAL REVENUE CODE § 1 1 Section catchline amended by Pub. L. 95–30 without cor- responding amendment of analysis. 2014—Pub. L. 113–295, div. A, title II, § 221(a)(12)(A), Dec. 19, 2014, 128 Stat. 4038, struck out part VII ‘‘Envi- ronmental tax’’. 1989—Pub. L. 101–234, title I, § 102(a), Dec. 13, 1989, 103 Stat. 1980, repealed Pub. L. 100–360, § 111, and provided that the provisions of law amended by such section are restored or revived as if such section had not been en- acted, see 1988 Amendment note below. 1988—Pub. L. 100–360, title I, § 111(c), July 1, 1988, 102 Stat. 697, added part VIII ‘‘Supplemental medicare pre- mium’’. 1986—Pub. L. 99–499, title V, § 516(b)(5), Oct. 17, 1986, 100 Stat. 1771, added part VII. 1976—Pub. L. 94–455, title XIX, § 1901(b)(2), Oct. 4, 1976, 90 Stat. 1792, struck out part V ‘‘Tax surcharge’’. 1969—Pub. L. 91–172, title III, § 301(b)(1), Dec. 30, 1969, 83 Stat. 585, added part VI. 1968—Pub. L. 90–364, title I, § 102(d), June 28, 1968, 82 Stat. 259, added part V. PART I—TAX ON INDIVIDUALS Sec. 1. Tax imposed. 2. Definitions and special rules. 3. Tax tables for individuals having taxable in- come of less than $20,000.1 [4. Repealed.] 5. Cross references relating to tax on individ- uals. Editorial Notes AMENDMENTS 1976—Pub. L. 94–455, title V, § 501(c)(1), Oct. 4, 1976, 90 Stat. 1559, substituted ‘‘Tax tables for individuals hav- ing taxable income of less than $20,000’’ for ‘‘Optional tax tables for individuals’’ in item 3 and struck out item 4 relating to rules for optional tax. 1969—Pub. L. 91–172, title VIII, § 803(d)(9), Dec. 30, 1969, 83 Stat. 685, substituted ‘‘Definitions and special rules’’ and ‘‘Optional tax tables for individuals’’ for ‘‘Tax in case of joint return or return

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Federal law — U.S. Code and appendices · legal_authorities

26 U.S.C. § 501 — Exemption from tax on corporations, certain trusts, etc.

**(a) Exemption from taxation** An organization described in subsection (c) or (d) or section 401(a) shall be exempt from taxation under this subtitle unless such exemption is denied under section 502 or 503. **(b) Tax on unrelated business income and certain other activities** An organization exempt from taxation under subsection (a) shall be subject to tax to the extent provided in parts II, III, and VI of this subchapter, but (notwithstanding parts II, III, and VI of this subchapter) shall be considered an organization exempt from income taxes for the purpose of any law which refers to organizations exempt from income taxes. **(c) List of exempt organizations** The following organizations are referred to in subsection (a): (1) Any corporation organized under Act of Congress which is an instrumentality of the United States but only if such corporation— (A) is exempt from Federal income taxes— (i) under such Act as amended and supplemented before July 18, 1984, or (ii) under this title without regard to any provision of law which is not contained in this title and which is not contained in a revenue Act, or (B) is described in subsection (l). (2) Corporations organized for the exclusive purpose of holding title to property, collecting income therefrom, and turning over the entire amount thereof, less expenses, to an organization which itself is exempt under this section. Rules similar to the rules of subparagraph (G) of paragraph (25) shall apply for purposes of this paragraph. (3) Corporations, and any community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition (but only

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Federal law — U.S. Code and appendices · legal_authorities

26 U.S.C. § 501 — Exemption from tax on corporations, cer-

Page 1660 TITLE 26—INTERNAL REVENUE CODE § 501 1 So in original. Probably should be ‘‘Certain savings entities.’’ and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of this title. TREATMENT OF TRANSFERS OF LAND BETWEEN RELATED PARTIES Pub. L. 99–514, title XVIII, § 1803(a)(9), Oct. 22, 1986, 100 Stat. 2794, provided that: ‘‘In the case of any sale or ex- change before July 1, 1985, to which section 483(f) of the Internal Revenue Code of 1954 [now 1986] (as in effect on the day before the date of the enactment of Public Law 99–121 [Oct. 11, 1985]) applies, such section shall be treated as providing that the discount rate to be used for purposes of section 483(c)(1) of such Code shall be 6 percent, compounded semiannually.’’ TRANSITIONAL RULE FOR PURPOSES OF IMPUTED INTEREST RULES Provisions, respecting treatment of debt instruments received in exchange for property, relating to special rules for sales after Dec. 31, 1984, and before July 1, 1985, general rule for assumptions of loans, exception for as- sumptions of loans made on or before Oct. 15, 1984, and exception for assumptions of loans with respect to cer- tain property, see section 44(b)(4)–(7) of Pub. L. 98–369, as amended, set out as an Effective Date note under section 1271 of this title. Subchapter F—Exempt Organizations Part I. General rule. II. Private foundations. III. Taxation of business income of certain ex- empt organizations. IV. Farmers’ cooperatives. V. Shipowners’ protection and indemnity asso- ciations. VI. Political org

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Federal law — U.S. Code and appendices · legal_authorities

26 U.S.C. § 851 — Definition of regulated investment company

**(a) General rule** For purposes of this subtitle, the term “regulated investment company” means any domestic corporation— (1) which, at all times during the taxable year— (A) is registered under the Investment Company Act of 1940, as amended ([15 U.S.C. 80a–1](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section80a–1&num=0&edition=prelim) to 80b–2) as a management company or unit investment trust, or (B) has in effect an election under such Act to be treated as a business development company, or (2) which is a common trust fund or similar fund excluded by section 3(c)(3) of such Act ([15 U.S.C. 80a–3(c)](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section80a–3/c&num=0&edition=prelim)) from the definition of “investment company” and is not included in the definition of “common trust fund” by section 584(a). **(b) Limitations** A corporation shall not be considered a regulated investment company for any taxable year unless— (1) it files with its return for the taxable year an election to be a regulated investment company or has made such election for a previous taxable year; (2) at least 90 percent of its gross income is derived from— (A) dividends, interest, payments with respect to securities loans (as defined in section 512(a)(5)), and gains from the sale or other disposition of stock or securities (as defined in section 2(a)(36) of the Investment Company Act of 1940, as amended) or foreign currencies, or other income (including but not limited to gains from options, futures or forward contracts) derived with respect to its business of investing in such stock, securities, or currencies, and (B) net income derived from an interest in a qualified publicly traded partnership (as defined in subsection (h))

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Federal law — U.S. Code and appendices · legal_authorities

26 U.S.C. § 851 — Definition of regulated investment com-

Page 1951 TITLE 26—INTERNAL REVENUE CODE § 851 be allowed as a deduction ratably over the 120-month period beginning with the first month in the second half of such taxable year.’’ EFFECTIVE DATE OF 2014 AMENDMENT Amendment by Pub. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(b) of Pub. L. 113–295, set out as a note under section 1 of this title. EFFECTIVE DATE OF 2006 AMENDMENT Amendment by Pub. L. 109–280 applicable to contracts issued after Dec. 31, 1996, but only with respect to tax- able years beginning after Dec. 31, 2009, and to specified policy acquisition expenses determined for taxable years beginning after Dec. 31, 2009, see section 844(g)(1), (4) of Pub. L. 109–280, set out as a note under section 72 of this title. EFFECTIVE DATE OF 2003 AMENDMENT Amendment by Pub. L. 108–173 applicable to taxable years beginning after Dec. 31, 2003, see section 1201(k) of Pub. L. 108–173, set out as a note under section 62 of this title. EFFECTIVE DATE OF 1996 AMENDMENT Amendment by Pub. L. 104–191 applicable to taxable years beginning after Dec. 31, 1996, see section 301(j) of Pub. L. 104–191, set out as a note under section 62 of this title. EFFECTIVE DATE OF 1993 AMENDMENT Amendment by Pub. L. 103–66 applicable, except as otherwise provided, with respect to property acquired after Aug. 10, 1993, see section 13261(g) of Pub. L. 103–66, set out as an Effective Date note under section 197 of this title. EFFECTIVE DATE Pub. L. 101–508, title XI, § 11301(d)(1), Nov. 5, 1990, 104 Stat. 1388–449, provided that: ‘‘The amendments made by subsections (a) and (c) [enacting this section] shall apply to taxable years ending on or after September 30, 1990. Any capitalization required by reason of such amendments

Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 851

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Federal law — U.S. Code and appendices · legal_authorities

26 U.S.C. § 856 — Definition of real estate investment trust

**(a) In general** For purposes of this title, the term “real estate investment trust” means a corporation, trust, or association— (1) which is managed by one or more trustees or directors; (2) the beneficial ownership of which is evidenced by transferable shares, or by transferable certificates of beneficial interest; (3) which (but for the provisions of this part) would be taxable as a domestic corporation; (4) which is neither (A) a financial institution referred to in section 582(c)(2), nor (B) an insurance company to which subchapter L applies; (5) the beneficial ownership of which is held by 100 or more persons; (6) subject to the provisions of subsection (k), which is not closely held (as determined under subsection (h)); and (7) which meets the requirements of subsection (c). **(b) Determination of status** The conditions described in paragraphs (1) to (4), inclusive, of subsection (a) must be met during the entire taxable year, and the condition described in paragraph (5) must exist during at least 335 days of a taxable year of 12 months, or during a proportionate part of a taxable year of less than 12 months. **(c) Limitations** A corporation, trust, or association shall not be considered a real estate investment trust for any taxable year unless— (1) it files with its return for the taxable year an election to be a real estate investment trust or has made such election for a previous taxable year, and such election has not been terminated or revoked under subsection (g); (2) at least 95 percent (90 percent for taxable years beginning before January 1, 1980) of its gross income (excluding gross income from prohibited transactions) is derived from— (A) dividends; (B) interest; (C) rents from real property; (D) gain from the sale or other

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Federal law — U.S. Code and appendices · legal_authorities

26 U.S.C. § 856 — Definition of real estate investment trust

Page 1975 TITLE 26—INTERNAL REVENUE CODE § 856 Modernization Act of 2010, Pub. L. 111–325, to which such amendment relates, with savings provision in cer- tain cases of an election by a regulated investment company under section 852(b)(8) of this title, see sec- tion 205(f) of Pub. L. 113–295, set out as a note under section 852 of this title. EFFECTIVE DATE OF 2010 AMENDMENT Amendment by section 301(g) of Pub. L. 111–325 appli- cable to taxable years beginning after Dec. 22, 2010, see section 301(h) of Pub. L. 111–325, set out as a note under section 852 of this title. Pub. L. 111–325, title III, § 304(d), Dec. 22, 2010, 124 Stat. 3549, provided that: ‘‘The amendments made by this section [amending this section] shall apply to dis- tributions in taxable years beginning after the date of the enactment of this Act [Dec. 22, 2010].’’ 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. EFFECTIVE DATE OF 1986 AMENDMENT Amendment by section 651(b)(1)(B) of Pub. L. 99–514 applicable to calendar years beginning after Dec. 31, 1986, see section 651(d) of Pub. L. 99–514, set out as an Effective Date note under section 4982 of this title. Amendment by section 655(a)(5) of Pub. L. 99–514 ap- plicable to taxable years beginning after Oct. 22, 1986, see section 655(b) of Pub. L. 99–514, set out as a note under section 852 of this title. EFFECTIVE DATE OF 1964 AMENDMENT Amendment by Pub. L. 88–272 applicable to taxable years of regulated investment companies ending on or after Feb. 26, 1964, see section 229(c

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Arkansas Code — all titles (historical 2020) · legal_authorities

26-51-101. Title.

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

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