SB156 Alabama 2013 Session

Summary

Primary Sponsor

Mark Slade Blackwell

Republican

Session

Regular Session 2013

Title

Income tax deductions, carry forward capital loss for three years, Sec. 40-18-15 am'd.

Summary

Alabama would let residents carry capital losses forward on their state income tax returns for up to three years.

What This Bill Does

The bill changes how capital losses can be used on Alabama state tax forms. Currently losses can be deducted only in the year they occur. It allows a capital loss to be carried forward for up to three years from the year the loss happened, following federal rules but with a hard three-year limit for the carryforward. Net operating loss carryback rules (two-year) remain unchanged.

Who It Affects

• Alabama resident taxpayers who incur capital losses and want to use losses to offset future income
• Taxpayers who expect future capital gains and could use carried-forward losses to offset those gains

Key Provisions

• Amendment to Section 40-18-15 to allow a three-year capital loss carryforward for state income tax purposes.
• Capital loss carrybacks and carryforwards shall follow 26 U.S.C. 1212 rules, with the carryforward limited to three years from the year the loss was incurred.
• Effective date: immediate upon passage and approval by the Governor.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation