26 CAR § 100-136. Deductions — Depreciation — Expensing of property — Arkansas Code § 26-51-428

(a) Depreciation — Arkansas Code § 26-51-428(a). (1)(A) For property placed in service during tax years beginning before January 1, 1995, I.R.C. §§ 167, 168, and 179 as in effect on January 1, 1991, shall apply. (B) The I.R.C. § 179 deduction is limited to ten thousand dollars ($10,000). (C) Any I.R.C. § 179 expense disallowed because of the limitation: (i) May be depreciated by regular depreciation methods appropriate for that property; or (ii) Can be carried forward. (2)(A) Property placed in service during tax years beginning before January 1, 1995, will have a useful life as determined by I.R.C. § 168 as in effect on January 1, 1991. (B) Property placed in service during tax years beginning on or after January 1, 1995, will have a useful life as determined by I.R.C. § 168 as in effect on January 1, 1995. (3) Any differences in basis because of depreciation differences must be included in the determination of gain or loss upon disposition of the property. (b) Amortization of intangibles — Arkansas Code § 26-51-428(c). (1) For tax years beginning before January 1, 1995, I.R.C. § 197 regarding amortization of intangibles shall apply. (2) For tax years beginning on or after January 1, 1995, I.R.C. § 197 shall apply. (3) Any differences in Arkansas and federal basis must be considered in calculating gain or loss upon disposition of the intangibles.