Ark. Code R. 26-51-419 - 1 (1997) - Charitable Contributions
Arkansas has adopted IRC Section170 as referenced in ACA26-51-419. 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.
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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).