{"data":{"id":"us-ar/ark.-code-ann.-26-51-457","jurisdiction":"us-ar","citation":"Ark. Code Ann. § 26-51-457","heading":"Claim of right","body":"(a) Title 26 U.S.C. § 1341(a)(1)-(3) and (b)(2) , as they existed on January 1, 2013, regarding the computation of income tax when a taxpayer restores a substantial amount held under a claim of right, is adopted for purposes of computing income tax liability under this chapter. (b) (1) Title 26 U.S.C. § 1341(a)(4) and (5), (b)(1), and (b)(3)-(5) , concerning the methods of calculating the deduction authorized under 26 U.S.C. § 1341 and special rules for net operating losses and capital losses, are not adopted. (2) For the purpose of computing income tax when a taxpayer restores a substantial amount held under a claim of right under this section: (A) The tax imposed under this chapter is calculated for the taxable year by allowing a deduction in the tax year the taxpayer restores the amount held under a claim of right; and (B) Net operating losses and capital losses are calculated and deducted under §§ 26-51-427 and 26-51-815 . (c) The Secretary of the Department of Finance and Administration may promulgate rules to administer this section. Amended by Act 2019, No. 910,§ 3720, eff. 7/1/2019. Added by Act 2013, No. 1284,§ 1, eff. for tax years beginning on or after January 1, 2013.\n\n(a) Title 26 U.S.C. § 1341(a)(1)-(3) and (b)(2) , as they existed on January 1, 2013, regarding the computation of income tax when a taxpayer restores a substantial amount held under a claim of right, is adopted for purposes of computing income tax liability under this chapter.\n\n(b) (1) Title 26 U.S.C. § 1341(a)(4) and (5), (b)(1), and (b)(3)-(5) , concerning the methods of calculating the deduction authorized under 26 U.S.C. § 1341 and special rules for net operating losses and capital losses, are not adopted. (2) For the purpose of computing income tax when a taxpayer restores a substantial amount held under a claim of right under this section: (A) The tax imposed under this chapter is calculated for the taxable year by allowing a deduction in the tax year the taxpayer restores the amount held under a claim of right; and (B) Net operating losses and capital losses are calculated and deducted under §§ 26-51-427 and 26-51-815 .\n\n(1) Title 26 U.S.C. § 1341(a)(4) and (5), (b)(1), and (b)(3)-(5) , concerning the methods of calculating the deduction authorized under 26 U.S.C. § 1341 and special rules for net operating losses and capital losses, are not adopted.\n\n(2) For the purpose of computing income tax when a taxpayer restores a substantial amount held under a claim of right under this section: (A) The tax imposed under this chapter is calculated for the taxable year by allowing a deduction in the tax year the taxpayer restores the amount held under a claim of right; and (B) Net operating losses and capital losses are calculated and deducted under §§ 26-51-427 and 26-51-815 .\n\n(A) The tax imposed under this chapter is calculated for the taxable year by allowing a deduction in the tax year the taxpayer restores the amount held under a claim of right; and\n\n(B) Net operating losses and capital losses are calculated and deducted under §§ 26-51-427 and 26-51-815 .\n\n(c) The Secretary of the Department of Finance and Administration may promulgate rules to administer this section.","path":["AR Code","Title 26","Chapter 51","Subchapter 4"],"source_url":"https://oss-data-us.vaquill.ai/v2026.08/us_ar_statutes.parquet","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:41Z","sha256":"d9cc68da4a1b210b408957539a69d96ed62be0e7ee561ce675e9f8a5e09a0d2b","source_id":"us-ar","stale":false,"prev":"us-ar/ark.-code-ann.-26-51-453","next":"us-ar/ark.-code-ann.-26-51-458"},"notice":"GroundRules: Original legal text. Not legal advice."}