ARSD § 64:26:04:28 — Federal income tax deductible -- Other income, privilege, and franchise taxes not deductible

64:26:04:28. Federal
income tax deductible -- Other income, privilege, and franchise taxes not
deductible. Net federal income taxes are deductible from taxable income in
the year in which they are paid when the cash method of accounting is used in
determining the net income of the taxpayer. Net federal income taxes are
deductible from taxable income in the tax year in which they are incurred when
the accrual method of accounting is used in determining the net income of
taxpayer. Any other income, franchise, or privilege taxes which were deducted
to determine federal taxable income are not deductible.