A.  The secretary is authorized to provide methods for transition and allocation between the requirements of prior law and the requirements of this Part in order that timing differences and other differences in tax accounting such as the adjusted basis of property may be reconciled.  

B.  Differences between prior law and this Part respecting basis or other provisions such as those which require or allow a taxpayer to do the following:

(1)  To report gross income under this Part in a period later than under prior law or earlier than under prior law.  

(2)  To deduct expenses under this Part one or more periods after such expenses are allowable under prior law or one or more periods before such expenses are allowable under prior law.  

(3)  To report an item of income more than once.  

(4)  To deduct an item of cost more than once, may be allocated by the secretary between taxable years, or disallowed, or required to be reported, as the case may be, when the secretary determines such allocations or methods are necessary to clearly reflect income.  

C.  For purposes of this Section, the term “require” includes lawful elections made by the taxpayer.  

D.  The secretary is authorized to promulgate rules and regulations to carryout and enforce the purposes of this Section.  

Acts 1986, 1st Ex. Sess., No. 16, §1, eff. Dec. 24, 1986.