Arkansas Administrative Code
Agency 006 - Department of Finance and Administration
Division 05 - Division of Revenues
1998-1 - Comprehensive Corporation Income Tax Regulations
Rule 26-51-428 - DEDUCTIONS - DEPRECIATION AND EXPENSING OF PROPERTY
Rule 1.26-51-428(a) - Depreciation
For property placed in service during tax years beginning before 01/01/95, Sections 167, 168 and 179 of the Internal Revenue Code as in effect on 01/01/91 shall apply. The Section 179 deduction is limited to $10,000.
For tax years beginning on or after 01/01/95 and beginning on or before 12/31/96, the deduction is limited to $17,500.
The schedule below shows the phase-in adopted under Section 179 as in effect on 01/01/97.
|
Tax Period Beginning in: |
Applicable Amount |
|
1997 |
$18,000 |
|
1998 |
$18,500 |
|
1999 |
$19,000 |
|
2000 |
$20,000 |
|
2001 |
$24,000 |
|
2002 |
$24,000 |
|
2003 & thereafter |
$25,000 |
Any Section 179 expense disallowed because of the limitation may be depreciated by regular depreciation methods appropriate for that property or it may be carried forward.
Property placed in service during tax years beginning before 01/01/95 will have a useful life as determined by Section 168 as in effect on 01/01/91. Property placed in service during tax years 1995 and 1996 will have a useful life as determined by Section 168 as in effect on 01/01/95. Property placed in service beginning on or after 01/01/97 will have a useful life as determined by Section 168 as in effect on 01/01/97.
Any differences in basis because of depreciation differences must be included in the calculation of gain or loss upon disposition of the property.
