40-18-162
Section 40-18-162 Determination of tax of shareholder. (a) In determining the tax of a shareholder for the shareholder's taxable year in which the taxable year of the Alabama S corporation ends, or for the final taxable year of a shareholder who dies or of a trust or estate that terminates before the end of the corporation's taxable year, there shall be taken into account the shareholder's pro rata share of the corporation's: (1) Items of income, including tax-exempt income, loss, deduction, or credit the separate treatment of which could affect the liability for tax of any shareholder, including charitable contributions, and (2) Nonseparately computed income or loss. The term "nonseparately computed income or loss" means gross income minus the deductions allowed to the corporation under this article, determined by excluding all items described in subdivision (1) of this subsection. (b) The character of any item included in a shareholder's pro rata share under subsection (a) of this...
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40-18-174
Section 40-18-174 Tax imposed on certain built-in gains. (a) If for any taxable year beginning in the recognition period an Alabama S corporation has a net recognized built-in gain, there is hereby imposed a tax (computed under subsection (b)) on the income of such corporation for such taxable year. (b)(1) The amount of the tax imposed by subsection (a) shall be computed by multiplying five percent by the net recognized built-in gain of the Alabama S corporation for the taxable year. (2) Notwithstanding Section 40-18-168, any net operating loss carryforward which would be deductible except for Section 40-18-168 and which arose in a taxable year for which the corporation was not an Alabama S corporation, shall be allowed as a deduction against the net recognized built-in gain of the Alabama S corporation for the taxable year. For purposes of determining the amount of any such loss which may be carried to subsequent taxable years, the net recognized built-in gain shall be treated as...
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40-18-161
Section 40-18-161 Determination of taxable income. (a) The taxable income of an Alabama S corporation shall be determined in the same manner as in the case of an individual except that the items determined in subdivision (1), subsection (a) of Section 40-18-162 shall be separately stated, and the following deductions shall not be allowed: (1) Personal exemptions otherwise allowed by Section 40-18-19. (2) Charitable contributions otherwise allowed by Section 40-18-15, subdivision (a)(10). (3) The net operating loss deduction otherwise allowed by Section 40-18-15, subdivision (a)(16). (4) Medical expenses otherwise allowed by Section 40-18-15, subdivision (a)(13). (5) Alimony otherwise allowed by Section 40-18-15, subdivision (a)(18). (6) The deduction for certain expenses of producing income and determining taxes otherwise allowed by Section 40-18-15, subdivision (a)(14). (7) Contributions to individual retirement accounts otherwise allowed by Section 40-18-15, subdivision (a)(11). (8)...
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40-18-164
Section 40-18-164 Increase or decrease in basis of shareholder's stock; special rules. (a) The basis of each shareholder's stock in an Alabama S corporation shall be increased for any period by the sum of the following items determined with respect to that shareholder for the period: (1) The items of income described in subdivision (1) of subsection (a) of Section 40-18-162. (2) Any nonseparately computed income determined under subdivision (2) of subsection (a) of Section 40-18-162. (3) The excess of the deductions for depletion over the basis of the property subject to depletion. (b) The basis of each shareholder's stock in an Alabama S corporation shall be decreased for any period, but not below zero, by the sum of the following items determined with respect to the shareholder for the period: (1) Distributions by the corporation which were not includable in the income of the shareholder by reason of Section 40-18-165. (2) The items of loss and deduction described in subdivision (1)...
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40-18-35.1
Section 40-18-35.1 Carry forward of net operating losses. In computing the taxable income of corporations subject to income tax as outlined in Section 40-18-35, there shall be allowed, in addition to the deductions specified therein, a deduction for the sum of the net operating losses which may be carried forward to the taxable year for which the net income of the corporation is being computed. (1) The term "net operating loss" for the purposes of this section means the excess of the deductions (other than the deduction allowed by this subdivision) allowed by this chapter during a taxable year of the corporation over the corporation's gross income during that taxable year. For purposes of this paragraph, the corporation's gross income and allowable deductions shall be determined under the provisions of this chapter applicable to the year in which the net operating loss arises. (2) A net operating loss shall be carried forward to the earliest subsequent taxable year in which the...
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40-18-175
Section 40-18-175 Tax imposed when passive investment income of corporation having subchapter C earnings and profits exceeds 25 percent of gross receipts. (a) If for the taxable year an Alabama S corporation has accumulated earnings and profits at the close of the taxable year derived from years during which the corporation was an Alabama C corporation, and gross receipts more than 25 percent of which are passive investment income, then there is imposed a tax on the income of the corporation for the taxable year. The tax shall be computed by multiplying the excess net passive income by five percent. (b) (1) For purposes of this section: a. Except as provided in paragraph b below, the term "excess net passive income" means an amount which bears the same ratio to the net passive income for the taxable year as (i) the amount by which the passive investment income for the taxable year exceeds 25 percent of the gross receipts for the taxable year, bears to (ii) the passive investment income...
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40-16-10
Section 40-16-10 Computation of net income of financial institutions. (a) In computing the net income of financial institutions subject to the tax imposed by this chapter, there shall be allowed, in addition to the deductions specified therein, a deduction for the sum of the net operating losses which may be carried forward to the taxable year for which the net income of the financial institution is being computed. (1) The term "net operating loss" for the purposes of this chapter means the amount by which net income of the financial institution, before the deduction allowed by this section, with respect to a taxable year is less than zero. For purposes of this section, the financial institution's net income shall be determined under this chapter applicable to the year in which the net operating loss arises. (2) A net operating loss shall be carried forward to the earliest subsequent taxable year in which the financial institution has net income greater than zero, determined without...
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40-18-172
Section 40-18-172 "Post-termination transition period" and "determination" defined. (a) For purposes of this article, the term "post-termination transition period" means: (1) The period beginning on the day after the last day of the corporation's last taxable year as an Alabama S corporation and ending on the later of: a. The day which is one year after the last day. b. The due date for filing the return for the last year as an Alabama S corporation, including extensions. (2) The 120-day period beginning on the date of a determination pursuant to an audit of the taxpayer which follows the termination of the corporation's election to be treated as a federal S corporation and which adjusts a subchapter S item of income, loss, or deduction of the corporation arising during the S period. (3) The 120-day period beginning on the date of a determination that the corporation's election under 26 U.S.C. § 1362 had terminated for a previous taxable year. (b) For purposes of subsection (a), the...
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40-18-15
Section 40-18-15 Deductions for individuals generally. (a) No deduction shall be allowed for any losses, expenses, or interest deferred or disallowed pursuant to 26 U.S.C. § 267 or for any cost required to be capitalized in accordance with 26 U.S.C. § 263A; otherwise, there shall be allowed as deductions: (1) All ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, as determined in accordance with 26 U.S.C. § 162. (2) Interest paid or accrued within the taxable year on indebtedness, limited to the amount allowable as an interest deduction for federal income tax purposes in the corresponding tax year or period pursuant to the provisions of 26 U.S.C. §§ 163, 264, and 265. (3) The following taxes paid or accrued within the taxable year: a. Income taxes, Federal Insurance Contribution Act taxes, taxes on self-employment income and estate and gift taxes imposed by authority of the United States or any possession of the United...
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40-18-1
Section 40-18-1 Definitions. For the purpose of this chapter, the following terms shall have the respective meanings ascribed by this section: (1) ADVANCED FOSSIL-BASED GENERATION. The production of electricity from fossil-based generation with the use of technology or efficiency improvements to control or reduce carbon emissions, including but not limited to, technologies described in 26 U.S.C. § 48A(f), as such provision existed on December 31, 2007. (2) ALTERNATIVE ENERGY RESOURCES. Coal gasification or liquefaction, nuclear, and advanced fossil-based generation. (3) BIOMASS. Animals and plants, and the waste, by-products, or derivatives of either, including, but not limited to, the materials described in 26 U.S.C. §§ 45(c)(2), 45(c)(3), 45K(c)(3), or 48B(c)(4). (4) BUSINESS TRUST. Any entity which is a business trust for federal income tax purposes. (5) CAPTIVE REIT. Any REIT whose shares or certificates of beneficial interest are not regularly traded on an established...
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