If an individual who is the spouse or lineal descendant or ancestor of one or more shareholders of an Alabama S corporation or who is a spouse, a lineal descendant or ancestor of a beneficiary of a trust which is a shareholder of an Alabama S corporation renders services for the corporation or furnishes capital to the corporation without receiving reasonable compensation therefor, the Department of Revenue shall make such adjustments in the items taken into account by such individual and such shareholders as may be necessary in order to reflect the value of such services or capital.
Structure Code of Alabama
Title 40 - Revenue and Taxation.
Article 6 - Alabama S Corporations.
Section 40-18-160 - General Provisions.
Section 40-18-161 - Determination of Taxable Income.
Section 40-18-162 - Determination of Tax of Shareholder.
Section 40-18-164 - Increase or Decrease in Basis of Shareholder's Stock; Special Rules.
Section 40-18-165 - Distribution of Property Generally.
Section 40-18-167 - Applicability of Chapter.
Section 40-18-168 - "Carryforward" and "Carryback" Provisions.
Section 40-18-169 - Adjustments to Earnings and Profits.
Section 40-18-171 - Determination of Shareholder's Pro Rata Share; "Affected Shareholders" Defined.
Section 40-18-172 - "Post-Termination Transition Period" and "Determination" Defined.
Section 40-18-173 - Interpretation of Article Generally.
Section 40-18-174 - Tax Imposed on Certain Built-in Gains.
Section 40-18-176 - Nonresident Shareholder Composite Returns.