Current through February 27, 2024
A taxpayer, whose unitary business begins or ceases the oil
and gas activities described in
AS
43.20.144(a) in a tax year,
is subject to both
AS
43.20.144 and
AS
43.20.145 during the transition year and
shall calculate tax for that year as follows:
(1) the taxpayer shall determine income that
is subject to tax at ordinary rates before any net operating loss deduction by
adding
(A) taxable income under
AS
43.20.145, for the entire tax year,
multiplied by a ratio, the numerator of which is the number of days the
taxpayer was subject to
AS
43.20.145 and the denominator of which is the
number of days in the tax year; and
(B) taxable income under
AS
43.20.144 for the entire tax year, multiplied
by a ratio, the numerator of which is the number of days the taxpayer was
subject to
AS
43.20.144 and the denominator of which is the
number of days in the tax year;
(2) the taxpayer shall determine its
charitable contribution limitation by applying
26 U.S.C.
170 (Internal Revenue Code) based upon the
taxable income calculated under (1) of this section;
(3) the taxpayer shall determine capital
gains subject to the alternative rate under
AS
43.20.021(c) by adding
(A) capital gains calculated under
AS
43.20.145, for the entire tax year,
multiplied by a ratio, the numerator of which is the number of days the
taxpayer was subject to
AS
43.20.145 and the denominator of which is the
number of days in the tax year; and
(B) capital gains calculated under
AS
43.20.144 for the entire tax year, multiplied
by a ratio, the numerator of which is the number of days the taxpayer was
subject to
AS
43.20.144 and the denominator of which is the
number of days in the tax year;
(4) the taxpayer shall apportion allowable
federal credits and taxes imposed under
AS
43.20.021 by using an apportionment factor
that is the sum of
(A) the entire tax year's
apportionment factor calculated under
AS
43.19.010 (Multistate Tax Compact), Article
IX. 9, multiplied by a ratio, the numerator of which is the number of days the
taxpayer was subject to
AS
43.20.145 and the denominator of which is the
number of days in the tax year;
(B)
the entire tax year's apportionment factor calculated under
AS
43.20.144, multiplied by a ratio, the
numerator of which is the number of days the taxpayer was subject to
AS
43.20.144 and the denominator of which is the
number of days in the tax year;
(5) the taxpayer shall apply the following
depreciation rules:
(A) a taxpayer that
ceases to be subject to
AS
43.20.144 and that becomes subject to
AS
43.20.145 shall use the
(i) taxpayer's federal depreciation expense
in determining federal taxable income under (1)(A) of this section;
and
(ii) the depreciation methods
used in the prior year's return in determining federal taxable income under
(1)(B) of this section;
(B) a taxpayer that ceases to be subject to
AS
43.20.145 and that becomes subject to
AS
43.20.144 shall use the
(i) depreciation methods used in the prior
year's return in determining federal taxable income under (1)(A) of this
section; and
(ii) depreciation
methods under
15 AAC 20.480 as if those methods
had been in place on the date of acquisition of each asset in determining
federal taxable income under (1)(B) of this section;
(C) the new depreciation methods that the
taxpayer uses under this section are the taxpayer's depreciation methods for
future tax periods;
(D) a change in
depreciation method resulting from a taxpayer's change between
AS
43.20.144 and
43.20.145 is not a change in
accounting method.
In 2012 the revisor of statutes, acting under
AS
01.05.031, renumbered former AS 43.20.072 as
AS
43.20.144 and former AS 43.20.073 as
AS
43.20.145. As of Register 204 (January 2013),
the regulations attorney made conforming technical revisions under
AS
44.62.125(b)(6), to
15 AAC 20.540, so that
cross-references to former AS 43.20.072 and 43.20.073 now refer to the
renumbered statutes,
AS
43.20.144 and
43.20.145. In addition, the
regulations attorney made conforming technical revisions to the authority
citation that follows
15 AAC 20.540, so that citations
to former AS 43.20.072 and 43.20.073 now refer to the renumbered statutes,
AS
43.20.144 and
43.20.145.
Authority:AS
43.05.080
AS 43.19.010
AS 43.20.144
AS 43.20.145
