Browse Arkansas Code titles and sections
26-51-457. Claim of right.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-51-457. Claim of right.
(a) Title 26 U.S.C. § 1341(a)(1)-(3) and (b)(2), as they existed on January 1, 2013, regarding the computation of income tax when a taxpayer restores a substantial amount held under a claim of right, is adopted for purposes of computing income tax liability under this chapter.
(b)(1) Title 26 U.S.C. § 1341(a)(4) and (5), (b)(1), and (b)(3)-(5), concerning the methods of calculating the deduction authorized under 26 U.S.C. § 1341 and special rules for net operating losses and capital losses, are not adopted.
(2) For the purpose of computing income tax when a taxpayer restores a substantial amount held under a claim of right under this section:
(A) The tax imposed under this chapter is calculated for the taxable year by allowing a deduction in the tax year the taxpayer restores the amount held under a claim of right; and
(B) Net operating losses and capital losses are calculated and deducted under §§ 26-51-427 and 26-51-815.
(c) The Secretary of the Department of Finance and Administration may promulgate rules to administer this section.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-457
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:26-51-457
Source file: gov.ar.code.title.26.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 2f2bcc76308f796878e6f86e4bc59f5f212b9adde745241d32a905bf6363c8f8
Source location: content.xml paragraph 13165
Stored source content
26-51-457. Claim of right.
(a) Title 26 U.S.C. § 1341(a)(1)-(3) and (b)(2), as they existed on January 1, 2013, regarding the computation of income tax when a taxpayer restores a substantial amount held under a claim of right, is adopted for purposes of computing income tax liability under this chapter.
(b)(1) Title 26 U.S.C. § 1341(a)(4) and (5), (b)(1), and (b)(3)-(5), concerning the methods of calculating the deduction authorized under 26 U.S.C. § 1341 and special rules for net operating losses and capital losses, are not adopted.
(2) For the purpose of computing income tax when a taxpayer restores a substantial amount held under a claim of right under this section:
(A) The tax imposed under this chapter is calculated for the taxable year by allowing a deduction in the tax year the taxpayer restores the amount held under a claim of right; and
(B) Net operating losses and capital losses are calculated and deducted under §§ 26-51-427 and 26-51-815.
(c) The Secretary of the Department of Finance and Administration may promulgate rules to administer this section.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) General rule** If—
(1) an item was included in gross income for a prior taxable year (or years) because it appeared that the taxpayer had an unrestricted right to such item;
(2) a deduction is allowable for the taxable year because it was established after the close of such prior taxable year (or years) that the taxpayer did not have an unrestricted right to such item or to a portion of such item; and
(3) the amount of such deduction exceeds $3,000,
then the tax imposed by this chapter for the taxable year shall be the lesser of the following:
(4) the tax for the taxable year computed with such deduction; or
(5) an amount equal to—
(A) the tax for the taxable year computed without such deduction, minus
(B) the decrease in tax under this chapter (or the corresponding provisions of prior revenue laws) for the prior taxable year (or years) which would result solely from the exclusion of such item (or portion thereof) from gross income for such prior taxable year (or years).
For purposes of paragraph (5)(B), the corresponding provisions of the Internal Revenue Code of 1939 shall be chapter 1 of such code (other than subchapter E, relating to self-employment income) and subchapter E of chapter 2 of such code.
**(b) Special rules**
(1) If the decrease in tax ascertained under subsection (a)(5)(B) exceeds the tax imposed by this chapter for the taxable year (computed without the deduction) such excess shall be considered to be a payment of tax on the last day prescribed by law for the payment of tax for the taxable year, and shall be refunded or credited in the same manner as if it were an overpayment for such taxable year.
(2) Subsection (a) does not apply to any deduction allowable with respect to an item which was included in gross income by reason of th
Source: Supplied U.S. Code snapshot — release unconfirmed · 26 U.S.C. § 1341
Stored review status: release_metadata_unconfirmed. The source passage cites 26 U.S.C. § 1341. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 2428
TITLE 26—INTERNAL REVENUE CODE
[§ 1315
by any credit or set-off based upon any item
other than the one which was the subject of the
adjustment. The amount of the adjustment
under this part, if paid, shall not be recovered by
a claim or suit for refund or suit for erroneous
refund based upon any item other than the one
which was the subject of the adjustment.
(d) Taxes imposed by subtitle C
This part shall not apply to any tax imposed
by subtitle C (sec. 3101 and following relating to
employment taxes).
(Aug. 16, 1954, ch. 736, 68A Stat. 340; Pub. L.
85–866, title I, § 59(b), Sept. 2, 1958, 72 Stat. 1647;
Pub. L. 89–44, title VIII, § 809(d)(5)(B), June 21,
1965, 79 Stat. 168; Pub. L. 91–172, title V,
§ 512(f)(7), (8), Dec. 30, 1969, 83 Stat. 641, 642; Pub.
L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976,
90 Stat. 1834; Pub. L. 113–295, div. A, title II,
§ 221(a)(87), Dec. 19, 2014, 128 Stat. 4050.)
Editorial Notes
AMENDMENTS
2014—Subsecs. (d), (e). Pub. L. 113–295 redesignated
subsec. (e) as (d) and struck out former subsec. (d).
Prior to amendment, text of subsec. (d) read as follows:
‘‘No adjustment shall be made under this part in re-
spect of any taxable year beginning prior to January 1,
1932.’’
1976—Subsec. (b). Pub. L. 94–455 struck out ‘‘or his
delegate’’ after ‘‘Secretary’’.
1969—Subsec. (a). Pub. L. 91–172, § 512(f)(7), substituted
‘‘capital loss carryback or carryover’’ for ‘‘capital loss
carryover’’.
Subsec. (b). Pub. L. 91–172, § 512(f)(8), inserted ref-
erence to net capital loss.
1965—Subsec. (a)(1)(A). Pub. L. 89–44 struck out ‘‘(b)(1)
and (3)’’ and inserted in lieu thereof ‘‘(b)(1), (3), and
(4)’’.
1958—Subsec. (c). Pub. L. 85–866 substituted in second
sentence ‘‘The’’ for ‘‘Other than in the case of an ad
Source: Supplied 2024 U.S. Code historical extraction · 26 U.S.C. § 1341
Stored review status: historical_2024_not_currentness_verified. The source passage cites 26 U.S.C. § 1341. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-51-427. Deductions — Net operating loss carryover — Definitions.
In addition to other deductions allowed by this chapter, there is allowed as a deduction from gross income a net operating loss carryover under the following rules:
(1)(A) The net operating loss for any taxable year may be carried over to the next-succeeding taxable year and annually thereafter for a total period of three (3) years next succeeding the year of the net operating loss or until the net operating loss has been exhausted or absorbed by the taxable income of any succeeding year, whichever is earlier, if the net operating loss occurred in an income year beginning before January 1, 1987. The net operating loss deduction shall be carried forward in the order stated in this subdivision (1)(A).
(B) The net operating loss for any year ending on or after the passage of the Income Tax Act of 1929, § 26-51-101 et seq., and for any succeeding taxable year before January 1, 2020, may be carried over to the next-succeeding taxable year and annually thereafter for a total period of five (5) years next succeeding the year of the net operating loss or until the net operating loss has been exhausted or absorbed by the taxable income of any succeeding year, whichever is earlier, if the net operating loss occurred in an income year beginning on or after January 1, 1987, and before January 1, 2020. The net operating loss deduction shall be carried forward in the order stated in this subdivision (1)(B).
(C)(i) For net operating losses occurring in taxable years beginning on or after January 1, 2020, the net operating loss may be carried over to the next succeeding taxable year and annually thereafter for the following number of years next succeeding the tax year of the net operating loss or until the net o
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-427
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 26-51-427. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-51-815. Computing capital gains and losses — Definitions.
(a)(1)(A) To the extent they apply to capital gains and losses realized or incurred during income years beginning after December 31, 1996, 26 U.S.C. §§ 1211 — 1231, 1232 [repealed], 1232A [repealed], 1232B [repealed], 1233 — 1237, 1239, 1240 [repealed], 1241 — 1245, 1246 [repealed], 1247 [repealed], 1248 — 1250, 1251 [repealed], and 1252 — 1257, as in effect on January 1, 2011, and the regulations of the United States Secretary of the Treasury promulgated under 26 U.S.C. §§ 1211 — 1231, 1232 [repealed], 1232A [repealed], 1232B [repealed], 1233 — 1237, 1239, 1240 [repealed], 1241 — 1245, 1246 [repealed], 1247 [repealed], 1248 — 1250, 1251 [repealed], and 1252 — 1257, as in effect on January 1, 2011, are adopted for the purpose of computing tax liability under the Income Tax Act of 1929, § 26-51-101 et seq.
(B) However, the provisions of this section shall not apply to a C corporation as defined in 26 U.S.C. § 1361, as in effect on January 1, 2011.
(2) Furthermore, any other provisions of the federal income tax law and regulations necessary for interpreting and implementing 26 U.S.C. §§ 1211 — 1231, 1232 [repealed], 1232A [repealed], 1232B [repealed], 1233 — 1237, 1239, 1240 [repealed], 1241 — 1245, 1246 [repealed], 1247 [repealed], 1248 — 1250, 1251 [repealed], and 1252 — 1257 are adopted to that extent and as in effect on January 1, 2007.
(b)(1) Except as otherwise provided in this subsection, if a taxpayer has a net capital gain for tax years beginning on and after January 1, 1999, thirty percent (30%) of the gain is exempt from state income tax.
(2) If a taxpayer has a net capital gain, the following portion of the gain is exempt from state income tax:
(A) From January 1, 2015, through Januar
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-51-815
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 26-51-815. This identifies an authority to review, not proof of applicability.