15 CAR § 146-108 – Sale or disposition of equity interest

(a) For the purpose of ascertaining the gain or loss from the sale or other disposition of an equity interest in a business, the owner of the equity interest shall reduce his or her basis in the equity interest by the amount of cash received from selling the tax credits and the tax credits previously deducted under this section.
(b) However, sale or other disposition does not include a transfer from the holder of an equity interest to the business in liquidation of the equity interest.
(c) This reduced basis shall be used by the original purchaser or transferee when calculating tax due under the Income Tax Act of 1929, Arkansas Code § 26-51-101 et seq.