§ 26-51-436 - Deductions -- Limitations.
26-51-436. Deductions -- Limitations.
Notwithstanding any other provision of this act with regard to deductions allowed in computing net income:
(1) Section 465 of the Internal Revenue Code of 1986, as in effect on January 1, 1987, is adopted to limit deductions claimed under this act to the amount the taxpayer has at risk, as that term is used in the federal income tax law;
(2) Section 469 of the Internal Revenue Code of 1986, as in effect on January 1, 1997, regarding the limitations on deductibility of passive activity losses and credits, is adopted for the purpose of computing Arkansas income tax liability;
(3) Subsections (a), (b), (c), and (d) of 280F of the Internal Revenue Code of 1986, as in effect on January 1, 1999, regarding investment tax credit and depreciation for luxury automobiles, is adopted for purposes of computing Arkansas income tax liability;
(4) Section 68 of the Internal Revenue Code of 1986, as in effect on January 1, 2009, is adopted to limit itemized deductions;
(5) Section 220 of the Internal Revenue Code of 1986, as in effect on January 1, 2005, regarding the deductibility from income of contributions made to a medical savings account by the taxpayer or the taxpayer's employer, is adopted for the purpose of computing Arkansas income tax liability;
(6) Section 264 of the Internal Revenue Code of 1986, as in effect on January 1, 1999, regarding premium and interest deductions on life insurance of officers and employees, is adopted for the purpose of computing Arkansas income tax liability; and
(7) Section 470 of the Internal Revenue Code of 1986, as in effect on January 1, 2009, regarding leasing transactions between taxpayers, is adopted for the purpose of computing Arkansas income tax liability.