Arizona Form 140 - Resident Personal Income Tax Return

Form 140

I. Qualified State Tuition Program Distributions

The following expenses are qualified adoption expenses.

1. Nonreimbursed medical and hospital costs.

If you are a beneficiary of a qualified state tuition program, you

2. Adoption counseling.

may subtract some of the amount distributed from the program

3. Legal and agency fees.

for qualified education expenses. Enter the amount of the

distribution that you had to include in your federal adjusted

4. Other nonrecurring costs of adoption.

gross income. A qualified state tuition program is a program

If filing separately, you may take the entire subtraction, or

that meets the requirements of I.R.C. § 529.

you may divide the subtraction with your spouse. However,

the total subtraction taken by both you and your spouse

J. Subtraction for World War II Victims

cannot exceed $3,000.

You may subtract distributions made to you for your

F. Qualified Wood Stove, Wood Fireplace, or Gas

persecution or the persecution of your ancestors by Nazi

Fired Fireplace

Germany or any other Axis regime for racial, religious or

political reasons. If you are the first recipient of such

Arizona law provides a subtraction for converting an existing

distributions, enter the amount of the distributions that you

fireplace to a qualified wood stove, qualified wood fireplace, or

had to include in your federal adjusted gross income.

gas fired fireplace and non-optional equipment directly related

to its operation. You may subtract up to $500 of the costs

You may also subtract items of income that are attributable to,

incurred for converting an existing fireplace to a qualified wood

derived from or related to assets that were stolen or hidden

stove, qualified wood fireplace, or gas fired fireplace on your

from or lost to you if you were persecuted by Nazi Germany or

property located in Arizona. When you figure your subtraction,

any other Axis regime for racial, religious or political reasons

do not include taxes, interest, or other finance charges.

before, during or immediately after World War II. If you are

the first recipient of such income, enter the amount of income

A qualified wood stove or a qualified wood fireplace is a

that you had to include in your federal adjusted gross income.

residential wood heater that was manufactured on or after

July 1, 1990, or sold at retail on or after July 1, 1992. The

K. Installment Sale Income from Another State

residential wood heater must also meet the U.S. Environmental

Taxed by the Other State in a Prior Taxable Year

Protection Agency's July 1990 particulate emissions standards.

You may subtract income from an installment sale if both of

A qualified gas fired fireplace is any device that burns

the following apply:

natural or liquefied petroleum gas as its fuel through a

The income from the sale is subject to Arizona income tax

burner system that is permanently installed in the fireplace.

in 2010; and

The conversion of an existing wood burning fireplace to

You paid income tax to another state on that income in a

noncombustible gas logs that are permanently installed in

prior tax year.

the fireplace also qualifies as a gas fired fireplace.

Enter the amount of such income that you included in your

G. Claim of Right Adjustment for Amounts Repaid

Arizona gross income for 2010.

in Prior Taxable Years

Do not enter any amount that is subject to tax by both Arizona

You must make an entry here if all of the following apply.

and another state in 2010. In this case, you may be eligible for a

1. During a year prior to 2010 you were required to repay

tax credit. See Form 309 for details.

amounts held under a claim of right.

L. Agricultural Crops Given to Arizona Charities

2. You computed your tax for that prior year under

Arizona law allows a subtraction for qualified crop gifts made

Arizona's claim of right provisions.

during 2010 to one or more charitable organizations. To take

3. A net operating loss or capital loss was established due

this subtraction, you must be engaged in the business of

to the repayment made in the prior year.

farming or processing agricultural crops. The crop must be

4. You are entitled to take that net operating loss or capital

grown in Arizona. You must make your gift to a charitable

loss carryover into account when computing your 2010

organization located in Arizona that is exempt from Arizona

Arizona taxable income.

income tax.

5. The amount of the loss carryover allowed to be taken

into account for Arizona purposes is more than the

The subtraction is the larger of 80% of the wholesale market

amount included in your federal income.

price or 80% of the most recent sale price for the contributed

crop.

Enter the amount by which the loss carryover allowed for

the taxable year under Arizona law is more than the amount

To determine if your crop gift qualifies for this subtraction, see

included in your federal adjusted gross income.

Arizona Department of Revenue Income Tax Procedure ITP 93-2.

H. Certain Expenses Not Allowed for Federal Purposes

Basis

Adjustment

for

Property

Sold

Otherwise Disposed of During the Taxable Year

You may subtract some expenses that you cannot deduct on

your federal return when you claim certain federal tax credits.

With respect to property that is sold or otherwise disposed of

These federal tax credits are:

during the taxable year by a taxpayer who has complied with



The federal work opportunity credit

the requirement to add back all depreciation with respect to



The empowerment zone employment credit

that property on tax returns for all taxable years beginning



from and after December 31, 1999, enter the amount of

The credit for employer-paid social security taxes on

depreciation that has been allowed pursuant to I.R.C. §

employee cash tips



167(a) to the extent that the amount has not already reduced

The Indian employment credit

Arizona taxable income in the current or prior years. (Note:

If you received any of the above federal tax credits for 2010,

The practical effect of this is to allow a subtraction for the

enter the portion of wages or salaries you paid or incurred

difference in basis for any asset for which bonus depreciation

during the taxable year equal to the amount of those federal

has been claimed on the federal return.)

tax credits you received.

Arizona Form 140 - Resident Personal Income Tax Return - 2010 Page 13

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