Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 05 - Division of Revenues
1998-1 - Comprehensive Corporation Income Tax Regulations
Rule 26-51-419 - DEDUCTIONS - CHARITABLE CONTRIBUTIONS
Rule 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.
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).
