Section 40-18-14.3 – Gross Income – Discount and Interest.
Section 40-18-14.3 Gross income – Discount and interest. Gross income shall include original issue discount determined in accordance with 26 U.S.C. §§1271 to 1275, inclusive, and interest or other income determined in accordance with 26 U.S.C. §7872, related to certain related party loans, tax avoidance loans, etc. with below-market interest rates. (Acts 98-502, p. 1083, […]
Section 40-18-20 – Exemptions – Military Retirement Benefits.
Section 40-18-20 Exemptions – Military retirement benefits. (a) The first $4,750 retirement or compensation received as retirement benefit from the military services by any person retired from the military services of the United States of America and survivor benefits derived therefrom is hereby exempt from any state, county or municipal income tax or like tax […]
Section 40-18-15 – Deductions for Individuals Generally.
Section 40-18-15 Deductions for individuals generally. THIS SECTION WAS AMENDED BY ACT 2022-297 IN THE 2022 REGULAR SESSION, EFFECTIVE APRIL 11, 2022. THIS IS NOT IN THE CURRENT CODE SUPPLEMENT. (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 […]
Section 40-18-21 – Credits for Taxes Paid on Income From Sources Outside the State and for Job Development Fees.
Section 40-18-21 Credits for taxes paid on income from sources outside the state and for job development fees. (a)(1) For the purpose of ascertaining the income tax due under the provisions of this chapter by individual residents of Alabama whose gross income, as defined herein, is derived from sources both within and outside the State […]
Section 40-18-15.1 – Net Income Taxable Income Defined – Generally.
Section 40-18-15.1 Net income taxable income defined – Generally. For purposes of this chapter, the term “taxable income” or “net income” shall mean “gross income,” as defined in Section 40-18-14, less the deductions allowed to individuals by this chapter. (Act 98-502, p. 1083, §1.)
Section 40-18-21.1 – Annual Report of Credits Claimed for Taxes Paid to Foreign Countries.
Section 40-18-21.1 Annual report of credits claimed for taxes paid to foreign countries. The Department of Revenue shall report annually to the Legislature the extent to which credits for taxes paid to foreign countries are claimed during the preceding tax year. The report shall be due on the fifth legislative day of each regular session […]
Section 40-18-15.2 – Net Operating Loss.
Section 40-18-15.2 Net operating loss. Individuals may calculate a net operating loss from a trade or business and apply the net operating loss against prior taxable income or future taxable income pursuant to this section. (1) For purposes of this section, the term “net operating loss” means the excess of the deductions allowed by this […]
Section 40-18-22 – Taxpayers Engaged in Multistate Business – Allocation and Apportionment of Deductions and Exemptions.
Section 40-18-22 Taxpayers engaged in multistate business – Allocation and apportionment of deductions and exemptions. Taxpayers, including corporations, as well as subchapter K entities and Alabama S corporations, engaged in multistate business in such a manner as to subject their income to allocation and apportionment provided by the Multistate Tax Compact shall allocate and apportion […]
Section 40-18-6 – Gain or Loss – Basis of Property; Adjusted Basis.
Section 40-18-6 Gain or loss – Basis of property; adjusted basis. (a) Basis (unadjusted) of property. The basis of property shall be the cost of the property with the following exceptions: (1) INVENTORY VALUE. If the property should have been included in the last inventory, the basis shall be the last inventory value thereof. (2) […]
Section 40-18-15.3 – Deductions for Health Insurance Premiums.
Section 40-18-15.3 Deductions for health insurance premiums. (a) As used in this section, the following terms shall have the following meanings: (1) QUALIFYING EMPLOYEES. Alabama resident employees who are employed by qualifying employers, earn no more than $50,000 of wages in the applicable tax year, and report no more than $75,000 of adjusted gross income […]