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.

Author:    Verlon R. Frost, Jeff Taylor, and Ed Cutter, CPA
Authority: Sections 40-2A-7(a)(5) and 40-18-8, Code of Alabama 1975
History:    Effective June 19, 1992. Amended: Filed March 4, 1997, effective April 8, 1997.
                Amended: Filed April 28, 1999, effective June 2, 1999.