26-53-111. Deduction for bad debts.

Arkansas Code — all titles (historical 2020) · legal_authorities

26-53-111. Deduction for bad debts. A bad debt deduction from a taxable sale under this subchapter is allowed and shall be taken in the same manner as provided in § 26-52-309.

Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-53-111

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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Arkansas Code — all titles (historical 2020) · legal_authorities

26-52-309. Deduction for bad debts generally.

26-52-309. Deduction for bad debts generally. (a)(1) A taxpayer is allowed a deduction from taxable sales for a bad debt. (2) Any deduction taken under this section that is attributed to a bad debt shall not include interest. (b) The federal definition of “bad debt” in 26 U.S.C. § 166, as in effect on January 1, 2007, is the basis for calculating a bad debt deduction under this section except that the amount calculated pursuant to 26 U.S.C. § 166 shall be adjusted to exclude: (1) A financing charge or interest; (2) A sales or use tax charged on the purchase price; (3) An uncollectible amount on property that remains in the possession of the taxpayer or seller, until the full purchase price is paid; and (4) An expense incurred in attempting to collect any debt or repossessed property. (c)(1) A bad debt may be deducted on the sales and use tax return of a taxpayer for the tax period during which: (A) The bad debt is written off as uncollectible in the taxpayer's books and records; and (B) The taxpayer is eligible to deduct the bad debt for federal income tax purposes if the taxpayer or seller kept accounts on a cash basis or could be eligible to be claimed if the taxpayer or seller kept accounts on an accrual basis. (2) For purposes of this subsection, a taxpayer who is not required to file a federal income tax return may deduct a bad debt on a sales and use tax return filed for the period in which the bad debt is written off as uncollectible in the taxpayer's books and records if the taxpayer would be eligible for a bad debt deduction for federal income tax purposes if the taxpayer were required to file a federal income tax return. (d) If a bad debt deduction under this section is taken for a bad debt and the debt is subsequently collected in whol

Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-52-309

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 26-52-309. This identifies an authority to review, not proof of applicability.