Alaska Administrative Code — Title 15 (Revenue)
15 AAC 20.140
Determination of net capital gain or loss
# (a)
A taxpayer's net capital gain may be taxed at the alternative tax rate as provided in AS 43.20.021(c). A taxpayer may not deduct its net capital loss in determining taxable income. A taxpayer shall carry back or carry forward its net capital loss in accordance with Internal Revenue Code section 1212 (26 U.S.C. 1212).
# (b)
A taxpayer shall determine its net capital gain and net capital loss by applying Internal Revenue Code sections 1201 - 1259 (26 U.S.C. 1201 - 26 U.S.C. 1259) to its gains and losses as apportioned and allocated to Alaska.
# (c)
For purposes of illustrating the method of determining the taxpayer's net capital gain and loss under (b) of this section, the following example is offered:
EXAMPLE
Taxpayer A realized $100 of business capital gain and $200 of non-business capital loss, which is allocable to another state. Taxpayer A's Alaska apportionment factor is 15 percent.
Taxpayer A has no federal or Alaska capital loss carryforward from prior years. Taxpayer A has a federal net capital gain of zero, and a federal excess capital loss of $100. Taxpayer A's apportioned business capital gain is $15 ($100 X 15 percent). Its Alaska net capital gain is $15, the sum of its Alaska allocated capital gain or loss of zero and its apportioned business capital gain of $15.
# (d)
For purposes of determining net capital gain or loss, the department will, in its discretion, exclude from the determination the gains and losses realized by all foreign corporations, as defined in Internal Revenue Code section 7701(a) (26 U.S.C. 7701(a)), that are included in the combined report if a taxpayer cannot substantiate with reasonable certainty a full and accurate accounting for gains and losses of each foreign corporation sufficient to determine the taxpayer's net capital gain or loss under this section. A taxpayer may elect to treat the capital gains and losses of all foreign corporations that are included in its combined report as ordinary gains and losses. An election to treat the capital gains and losses of all foreign corporations as ordinary gains and losses shall be deemed to have been made by the taxpayer if the taxpayer fails to maintain records sufficient for the department to determine with reasonable certainty that there has been a full and accurate accounting for the gains and losses of each foreign corporation. An election under this subsection is irrevocable for the current and subsequent tax years without the consent of the department.
(Eff. 3/6/98, Register 145)
Statutory Authority:
Authority:
AS 43.05.080 AS 43.20.021
Amendment history
Eff. 3/6/98, Register 145
Source: official source document (full AAC Title 15 PDF)
In this chapter (40 sections)
- 20.010 · Persons not within the military exemption
- 20.020 · Returns and payment of tax
- 20.030 · Amount of withholding
- 20.040 · Overpayment, credits, and refund
- 20.042 · Filing requirements for payment of and determination of amount…
- 20.044 · Filing requirements for refund of 1979 individual net income…
- 20.046 · Filing requirements for refund of 1980 Alaska withholding or
- 20.050 · Allocation and apportionment of income
- 20.060 · Deposit and payment requirements by employers in connection…
- 20.070 · Timeliness of monthly deposit
- 20.080 · Deleted
- 20.100 · Returns
- 20.110 · Investment tax credit
- 20.120 · Alternative energy expenditure credit; eligibility
- 20.122 · Alternative energy system substantiation
- 20.124 · Energy conservation improvement substantiation
- 20.130 · Rates of tax
- 20.135 · Alternative minimum tax and credit for prior year minimum tax
- 20.140 · Determination of net capital gain or loss
- 20.145 · Credits adopted by reference
- 20.150 · Requirement to file returns electronically
- 20.155 · Electronic filing waivers
- 20.200 · Definitions
- 20.260 · Film production tax credit
- 20.300 · Combination and apportionment
- 20.310 · Unitary business
- 20.320 · Attribution of income
- 20.330 · Water's edge combined reporting method
- 20.335 · Affiliated group
- 20.340 · Worldwide combined reporting
- 20.345 · Water's edge returns
- 20.350 · Intercompany transactions
- 20.355 · Adjustments to intercompany transactions
- 20.360 · Records of intercompany transactions
- 20.375 · Income for the water's edge combined group
- 20.380 · Factors assignable to locations within the United States
- 20.385 · Treatment of foreign dividends and royalties
- 20.390 · Domestic disclosure spreadsheet
- 20.410 · Corporations engaged in oil or gas production or pipeline
- 20.420 · Reporting requirements