State Qualified Real Property Conformity

Technical topics regarding tax preparation.
#1
Posts:
8156
Joined:
4-Mar-2018 9:03pm
Location:
The Office
I was having some trouble getting Section 179 on qualified real property to flow through to the Arkansas state return for a 1040 client. Changing the asset to 5 years and unchecking the QRP box allows it to flow and after more troubleshooting the QRP box is what's causing the "issue."

I checked conformity and found this in the AR code via AnswerConnect:

26-51-428 Depreciation—Deductions—Expensing of property.

Sec. 26-51-428(a), as reproduced immediately below, is effective for tax years beginning before January 1, 2019. For provisions effective for tax years beginning on or after January 1, 2019, see below.

26-51-428(a)

Title 26 U.S.C. Sections 167 and 168(a)-(j), as in effect on January 1, 2017, and 26 U.S.C. Section 179, as in effect on January 1, 2009, regarding depreciation and expensing of property, are adopted for the purpose of computing Arkansas income tax liability for property purchased in tax years beginning on or after January 1, 2014.


Seems pretty clear cut to me... QRP didn't exist in the S179 code section on January 1, 2009. Therefore, AR does not conform and requires an adjustment over...39 years? :(
 

Return to Taxation



Who is online

Users browsing this forum: Google [Bot] and 124 guests