SB5 Alabama 2014 Session

Summary

Primary Sponsor

Mark Slade Blackwell

Republican

Session

Regular Session 2014

Title

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

Summary

SB5 extends Alabama's capital loss rules so losses can be carried forward until exhausted rather than being usable only in the year of the loss.

What This Bill Does

The bill amends Section 40-18-15 to make capital loss deductions operate in future years until the loss is fully used, aligning Alabama with federal rules. This means taxpayers can offset future capital gains with past capital losses, potentially reducing future taxes. The change applies to tax years beginning on or after January 1, 2014.

Who It Affects

• Alabama individual income taxpayers who incur capital losses (they gain the ability to carry those losses forward to future years).
• Taxpayers who expect to realize capital gains in Alabama in future years and could use carried-forward losses to offset those gains.

Key Provisions

• Extends capital loss provisions to be operative until exhaustion, allowing carry-forward of capital losses until they are fully used (per 26 U.S.C. § 1212(b)).
• Effective for tax years beginning on or after January 1, 2014.
• Disclaims any change in other deduction rules; the modification specifically affects the treatment of capital losses.

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