Deductions — Depreciation and expensing of property — Arkansas Code § 26-51-428

# (a) Depreciation — Arkansas Code § 26-51-428(a)

(a) Depreciation — Arkansas Code § 26-51-428(a).
(1)(A) For property placed in service during tax years beginning before January 1, 1995, Sections 167, 168, and 179 of the Internal Revenue Code as in effect on January 1, 1991, shall apply.

(B) The I.R.C. § 179 deduction is limited to ten thousand dollars ($10,000).

(2) For tax years beginning on or after January 1, 1995, and beginning on or before December 31, 1996, the deduction is limited to seventeen thousand five hundred dollars ($17,500).

(3) The schedule below shows the phase-in adopted under I.R.C. § 179 as in effect on January 1, 1997.
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

(4) Any I.R.C. § 179 expense disallowed because of the limitation may be:

(A) Depreciated by regular depreciation methods appropriate for that property; or

(B) Carried forward.
(5)(A) Property placed in service during tax years beginning before January 1, 1995, will have a useful life as determined by I.R.C. § 168 as in effect on January 1, 1991.

(B) Property placed in service during tax years 1995 and 1996 will have a useful life as determined by I.R.C. § 168 as in effect on January 1, 1995.

(C) Property placed in service beginning on or after January 1, 1997, will have a useful life as determined by I.R.C. § 168 as in effect on January 1, 1997.

(6) Any differences in basis because of depreciation differences must be included in the calculation of gain or loss upon disposition of the property.

# (b) Amortization of intangibles — Arkansas Code § 26-51-428(c)

(b) Amortization of intangibles — Arkansas Code § 26-51-428(c).
(1)(A) For tax years beginning before January 1, 1995, I.R.C. § 167 regarding amortization of intangibles shall apply.

(B) For tax years beginning on or after January 1, 1995, I.R.C. § 197 shall apply.

(2) Any differences in Arkansas and federal law concerning the computation of basis must be considered in calculating gain or loss upon disposition of the intangibles.