Ark. Code R. 26-51-419 - 1 (1997) - Charitable Contributions

26-51-419 - 1 - 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.

Click here to view image

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).

Disclaimer. This may not be the most current version of this information. Users should consult official sources to verify information on this site is recent and current. Marble does not warrant or represent the accuracy, completeness or reliability of the information contained on this site.