For transactions occurring after December 31, 1984, if a taxpayer makes a valid election under 26 U.S.C. §1033 (relating to involuntary conversions) for federal income tax purposes, the amount of gain recognized for Alabama income tax purposes shall be determined according to 26 U.S.C. §1033. For interpretation of federal statutes adopted by the Alabama Legislature see Rule 810-3-1.1.01, Operating Rules.

Author: Edward F. Cutter, CPA

Statutory Authority: Code of Ala. 1975, §§40-18-8, 40-18-57.

History: Amended: June 17, 1988; filed July 27, 1988. Amended: Filed September 18, 1996; effective October 23, 1996. Repealed and New Rule: Filed April 28, 1999; effective June 2, 1999.