Ala. Admin. Code r. 810-3-8-.19

Current through Register Vol. 43, No. 1, October 31, 2024

Section 810-3-8-.19 - Sales Of Stock To Employee Stock Ownership Plans Or Certain Cooperatives

(1) The amount of gain recognized by a taxpayer who has made a valid election under 26 U.S.C. § 1042, relating to sales of stock to employee stock ownership plans or certain cooperatives, shall be determined in accordance with 26 U.S.C. § 1042.

(2) If a taxpayer disposes of qualified replacement property, as defined by 26 U.S.C. § 1042, and recognizes gain under 26 U.S.C. § 1042(e), then the gain shall be recognized to the same extent and at the same time as under 26 U.S.C. § 1042(e).

(3) For interpretation of federal statutes adopted by the Alabama Legislature see Rule 810-3-1.1 -.01, Operating Rules.

Authors: Verlon R. Frost, Jeff Taylor, Ed Cutter, CPA

Ala. Admin. Code r. 810-3-8-.19

Filed May 15, 1992. Amended: Filed March 4, 1997; effective April 8, 1997. Repealed and New Rule: Filed April 28, 1999; effective June 2, 1999.

Statutory Authority:Code of Ala. 1975, §§ 40-2A-7 -(a)(5), 40-18-1.