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006.05.308-26-51-419. DEDUCTIONS - CHARITABLE CONTRIBUTIONS

AR ADC 006.05.308-26-51-419Arkansas Administrative Code

West's Arkansas Administrative Code
Title 006. Department of Finance and Administration
Division 05. Division of Revenues
Rule 308. Comprehensive Corporation Income Tax Regulations (Refs & Annos)
Ark. Admin. Code 006.05.308-26-51-419
006.05.308-26-51-419. DEDUCTIONS - CHARITABLE CONTRIBUTIONS
Currentness
1.26-51-419 Charitable Contributions
Arkansas has adopted IRC Section 170 as referenced in ACA 26-51-419. Section 170(d)(2)(B) does not allow unused contributions to increase NOL carry forward. It merely decreases net taxable income by current year contributions first, then any accumulated contribution carryforwards up to a 10% limitation. This decreases the amount of NOL used and increases the NOL available for future years.
EXAMPLE:
1989
1990
1991
1992
1993
1994
1995
Income
$107,000
$107,000
$107,000
$108,000
$110,000
$80,000
$150,000
Deductions Excluding Amortization & Charitable Deductions
105,000
105,000
105,000
105,000
105,000
105,000
105,000
Taxable Income Before Amortization, Charitable Deductions and NOL
2,000
2,000
2,000
3,000
5,000
(25,000)
45,000
Amortization of Organizational Expenditures
(2,000)
(2,000)
(2,000)
(2,000)
(2,000)
0
0
Charitable Deductions Allowed
0
0
0
(100)
(300)
0
(4,500)
Taxable Income (Loss) before NOL
0
0
0
900
2,700
(25,000)
40,500
Net Operating Loss
0
0
0
0
0
0
(25,000)
Taxable Income (Loss)
0
0
0
900
2,700
(25,000)
15,500
Taxable Income Before Amortization, Contributions and NOL
2,000
2,000
2,000
3,000
5,000
(25,000)
45,000
Organizational Expenses
(2,000)
(2,000)
(2,000)
(2,000)
0
0
0
Contribution Limitation Base
0
0
0
1,000
3,000
N/A
45,000
Limitation
X .10
X .10
X .10
X .10
X .10
N/A
X .10
Contributions Allowed
0
0
0
100
300
N/A
4,500
LIMITS ON CHARITABLE CONTRIBUTIONS
Year
Contributions
Utilized Current Year Limit
Current Year Balance
Prior Years Contribution Utilized
Year End Cumulative Carryforward
expired
1989
1,000
0
1,000
0
1,000
0
1990
1,000
0
1,000
0
2,000
0
1991
1,000
0
1,000
0
3,000
0
1992
1,000
100
900
0
3,900
0
1993
1,000
300
700
0
4,600
0
1994
1,000
0
1,000
0
4,600
1,000*
1995
1,000
1,000
0
3,500
1,100
0
Southern Arkansas Timber, Inc. started business on 01/01/89. Organization expenses amounted to $10,000. Amortization of organization expenditures is deducted before the 10% limit is allowed. Any unused charitable contributions cannot be added to NOLs when they expire.
* Contribution carryover from 1989 expired at the end of 1994 as shown in chart.
For charitable contributions for consolidated filers, refer to ACA 26-51-805(f).
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 006.05.308-26-51-419, AR ADC 006.05.308-26-51-419
End of Document