State Department of Revenue v. Jones Manufacturing Co.

ALMON, Justice.

The opinion of the Court of Civil Appeals, 589 So.2d 206, sufficiently sets forth the facts of this case. The question presented is whether that court erroneously decided a question of first impression, that is, whether a taxpayer corporation that is not subject to recognition of a gain upon the sale of its assets is nevertheless subject to Alabama income tax based upon recapture of depreciation.

Alabama Code 1975, § 40-18-8®,1 reads:

“Gain or loss on sales or exchanges in connection mth certain liquidations. — The amount of gain or loss recognized by a corporation on the sale or…