810-3-6-.15 Basis of Replacement Property in Sale of Stock to an Employee Stock Ownership Plan or Cooperative. If securities are sold to an employee stock ownership plan or an eligible work-owned cooperative, and gain was not recognized pursuant to § 40-18-8(n), Code of Alabama 1975, the basis of the qualified replacement property, as defined by 26 U.S.C. § 1042, shall be determined in accordance with 26 U.S.C. § 1042(d). For interpretation of federal statutes adopted by the Alabama Legislature see Rule 810-3-1.1-.01, Operating Rules.

Author:     Ed Cutter, CPA
Authority: §§ 40-2A-7(a)(5) and 40-18-6, Code of Alabama 1975
History:     New rule filed April 28, 1999, effective June 2, 1999.