Section 40-18-160 General provisions. (a) An Alabama S corporation shall not be subject to the tax imposed by Section 40-18-31. (b) For purposes of this chapter, an “Alabama S corporation” is a corporation: (1) With respect to which an election under 26 U.S.C. §1362 is in effect; or (2)a. With respect to which there is […]
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) […]
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 […]
Section 40-18-163 Adjustments for services rendered or capital furnished by spouse, etc., of shareholder or beneficiary. If an individual who is the spouse or lineal descendant or ancestor of one or more shareholders of an Alabama S corporation or who is a spouse, a lineal descendant or ancestor of a beneficiary of a trust which […]
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) […]
Section 40-18-165 Distribution of property generally. (a) A distribution of property made by an Alabama S corporation with respect to its stock to which, but for this article, Section 40-18-36 would apply shall be treated in the manner provided in subsection (b) or (c) of this section, whichever applies. (b) In the case of a […]
Section 40-18-166 “Accumulated adjustments account” defined; application generally; “S period” defined; applicability of subdivision (c)(1) of Section 40-18-165 to certain distributions; “affected shareholder” defined. (a)(1) Except as provided in subsection (b), for purposes of this article, the term “accumulated adjustments account” means an account of the Alabama S corporation which is adjusted for the S […]
Section 40-18-167 Applicability of chapter. Except to the extent inconsistent with this article, the rules of Article 1 of this chapter shall apply to an Alabama S corporation and its shareholders. (Code 1975, §40-14-97; Acts 1984, 1st Ex. Sess., No. 84-756, p. 121, §8; Acts 1997, No. 97-625, p. 1048, §3.)
Section 40-18-168 “Carryforward” and “carryback” provisions. No carryforward and no carryback arising for a taxable year for which a corporation is not an Alabama S corporation may be carried to a taxable year which such corporation is an Alabama S corporation. No carryforward and no carryback shall arise at the corporate level for a taxable […]
Section 40-18-169 Adjustments to earnings and profits. (a) Except as provided in subsections (b) and (c) of this section, no adjustment shall be made to the earnings and profits of an Alabama S corporation. (b) In the case of any transaction involving redemption, liquidation, reorganization or division of any Alabama S corporation, proper adjustment to […]
Section 40-18-170 Circumstances under which corporation treated as partnership; “two-percent shareholder” defined. For purposes of applying the provisions of this chapter which relate to employee fringe benefits, the Alabama S corporation shall be treated as a partnership, and any two-percent shareholder of the Alabama S corporation shall be treated as a partner of such partnership. […]
Section 40-18-171 Determination of shareholder’s pro rata share; “affected shareholders” defined. (a) For purposes of this article, except as provided in subsection (b), each shareholder’s pro rata share of any item for any taxable year shall be the sum of the amounts determined with respect to the shareholder by assigning an equal portion of the […]
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 […]
Section 40-18-173 Interpretation of article generally. Due consideration shall be given in the interpretation of this article to applicable sections of the U.S. Internal Revenue Code in effect from time to time, its rulings and regulations provided such Code, rulings, and regulations are not in direct conflict with any portion of this article. (Code 1975, […]
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 […]
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 […]
Section 40-18-176 Nonresident shareholder composite returns. (a) The Department of Revenue shall permit an Alabama S corporation to file composite returns and to make composite payments on behalf of some or all of its nonresident shareholders if there are one or more nonresident shareholders during any part of the taxable year. The Department of Revenue […]
