Browse Arkansas Code titles and sections
26-51-443. Allocation of unstated interest — Foregone interest.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-51-443. Allocation of unstated interest — Foregone interest.
(a) Title 26 U.S.C. § 483, as in effect on January 1, 1999, regarding the allocation of unstated interest, is adopted for the purpose of computing Arkansas income tax liability.
(b) Title 26 U.S.C. § 7872, as in effect on January 1, 2019, regarding the taxation of foregone interest on a below-market loan, is adopted for the purpose of computing Arkansas income tax liability.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-443
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:26-51-443
Source file: gov.ar.code.title.26.odt
Pages: Not recorded – Not recorded
Passage SHA-256: e24eef79dc70d5a16d81e9eaee19625da59ecfafa47185fc64f808629bd09218
Source location: content.xml paragraph 13053
Stored source content
26-51-443. Allocation of unstated interest — Foregone interest.
(a) Title 26 U.S.C. § 483, as in effect on January 1, 1999, regarding the allocation of unstated interest, is adopted for the purpose of computing Arkansas income tax liability.
(b) Title 26 U.S.C. § 7872, as in effect on January 1, 2019, regarding the taxation of foregone interest on a below-market loan, is adopted for the purpose of computing Arkansas income tax liability.
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) Amount constituting interest** For purposes of this title, in the case of any payment—
(1) under any contract for the sale or exchange of any property, and
(2) to which this section applies,
there shall be treated as interest that portion of the total unstated interest under such contract which, as determined in a manner consistent with the method of computing interest under section 1272(a), is properly allocable to such payment.
**(b) Total unstated interest** For purposes of this section, the term “total unstated interest” means, with respect to a contract for the sale or exchange of property, an amount equal to the excess of—
(1) the sum of the payments to which this section applies which are due under the contract, over
(2) the sum of the present values of such payments and the present values of any interest payments due under the contract.
For purposes of the preceding sentence, the present value of a payment shall be determined under the rules of section 1274(b)(2) using a discount rate equal to the applicable Federal rate determined under section 1274(d).
**(c) Payments to which subsection (a) applies**
(1) **In general** — Except as provided in subsection (d), this section shall apply to any payment on account of the sale or exchange of property which constitutes part or all of the sales price and which is due more than 6 months after the date of such sale or exchange under a contract—
(A) under which some or all of the payments are due more than 1 year after the date of such sale or exchange, and
(B) under which there is total unstated interest.
(2) **Treatment of other debt instruments** — For purposes of this section, a debt instrument of the purchaser which is given in consideration for the sale or exchange of property shall not be treate
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 483
Stored review status: release_metadata_unconfirmed. The source passage cites 26 U.S.C. § 483. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 1657
TITLE 26—INTERNAL REVENUE CODE
§ 483
made within six months after Sept. 2, 1958. Claims for
refunds of overpayments of tax resulting from the elec-
tion were to be filed within one year after the date of
the election. Such an election was to be considered a
consent to an assessment of a deficiency resulting from
the election, where the assessment is made within one
year after the date of the election.
§ 482. Allocation of income and deductions
among taxpayers
In any case of two or more organizations,
trades, or businesses (whether or not incor-
porated, whether or not organized in the United
States, and whether or not affiliated) owned or
controlled directly or indirectly by the same in-
terests, the Secretary may distribute, appor-
tion, or allocate gross income, deductions, cred-
its, or allowances between or among such orga-
nizations, trades, or businesses, if he determines
that such distribution, apportionment, or allo-
cation is necessary in order to prevent evasion
of taxes or clearly to reflect the income of any
of such organizations, trades, or businesses. In
the case of any transfer (or license) of intangible
property
(within
the
meaning
of
section
367(d)(4)), the income with respect to such trans-
fer or license shall be commensurate with the
income attributable to the intangible. For pur-
poses of this section, the Secretary shall require
the valuation of transfers of intangible property
(including intangible property transferred with
other property or services) on an aggregate basis
or the valuation of such a transfer on the basis
of the realistic alternatives to such a transfer, if
the Secretary determines that such basis is the
most reliable means of valuation of such trans-
fers.
(Aug. 16, 1954, ch. 736, 68A Stat.
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 483
Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 483. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Treatment of gift loans and demand loans**
(1) **In general** — For purposes of this title, in the case of any below-market loan to which this section applies and which is a gift loan or a demand loan, the forgone interest shall be treated as—
(A) transferred from the lender to the borrower, and
(B) retransferred by the borrower to the lender as interest.
(2) **Time when transfers made** — Except as otherwise provided in regulations prescribed by the Secretary, any forgone interest attributable to periods during any calendar year shall be treated as transferred (and retransferred) under paragraph (1) on the last day of such calendar year.
**(b) Treatment of other below-market loans**
(1) **In general** — For purposes of this title, in the case of any below-market loan to which this section applies and to which subsection (a)(1) does not apply, the lender shall be treated as having transferred on the date the loan was made (or, if later, on the first day on which this section applies to such loan), and the borrower shall be treated as having received on such date, cash in an amount equal to the excess of—
(A) the amount loaned, over
(B) the present value of all payments which are required to be made under the terms of the loan.
(2) **Obligation treated as having original issue discount** — For purposes of this title—
(A) *In general* — Any below-market loan to which paragraph (1) applies shall be treated as having original issue discount in an amount equal to the excess described in paragraph (1).
(B) *Amount in addition to other original issue discount* — Any original issue discount which a loan is treated as having by reason of subparagraph (A) shall be in addition to any other original issue discount on such loan (determined without regard
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 7872
Stored review status: release_metadata_unconfirmed. The source passage cites 26 U.S.C. § 7872. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 4080
TITLE 26—INTERNAL REVENUE CODE
§ 7872
of the United States in effect on Oct. 22, 1986, see sec-
tion 1012(aa)(3), (4) of Pub. L. 100–647, set out as a note
under section 861 of this title.
PLAN AMENDMENTS NOT REQUIRED UNTIL
JANUARY 1, 1989
For provisions directing that if any amendments
made by subtitle A or subtitle C of title XI [§§ 1101–1147
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.
§ 7872. Treatment of loans with below-market in-
terest rates
(a) Treatment of gift loans and demand loans
(1) In general
For purposes of this title, in the case of any
below-market loan to which this section ap-
plies and which is a gift loan or a demand
loan, the forgone interest shall be treated as—
(A) transferred from the lender to the bor-
rower, and
(B) retransferred by the borrower to the
lender as interest.
(2) Time when transfers made
Except as otherwise provided in regulations
prescribed by the Secretary, any forgone in-
terest attributable to periods during any cal-
endar year shall be treated as transferred (and
retransferred) under paragraph (1) on the last
day of such calendar year.
(b) Treatment of other below-market loans
(1) In general
For purposes of this title, in the case of any
below-market loan to which this section ap-
plies and to which subsection (a)(1) does not
apply, the lender shall be treated as having
transferred on the date the loan was made (or,
if later, on the first day on which this section
applies to such loan), and the borrower shall
be treated
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 7872
Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 7872. This identifies an authority to review, not proof of applicability.