Instructions For Arizona Form 141az - 2013 Page 14
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15Arizona Form 141AZ
Example of the computation of Arizona fiduciary income tax, resident beneficiary’s Arizona fiduciary
adjustment, and nonresident beneficiary’s Arizona source income.
June Jones income reportable to Arizona is figured as
The federal Form 1041 for the Judy Jones estate showed
follows:
the following items of income and deduction:
Interest Income
$ 32,614
Share of federal distributable net income
$ 12,000
Dividends
4,800
From Arizona sources @ 29.67%
3,561
Net Rent Income (AZ)
16,832
Total Income
$ 54,246
Arizona source income is figured as follows:
Less: Fiduciary Fees
6,000
Accountant’s Fees
1,500
Rental income (Arizona) $16,832
.
Total Fees
(7,500)
Total income $56,722 ($54,246 + $2,476)
= 29.67%
Adjusted Total Income
$ 46,746
Less: Income Distribution Deduction
34,189
This can be verified as follows:
Exemption
600
Total Deductions
($ 34,789)
June’s share of income $12,000
.
Taxable Income
$ 11,957
DNI $49,222 ($46,746+$2,476)
= 29.67%
Share of rental income $16,832 X 24.38%
= $4,104
The estate also had $2,476 in non-Arizona municipal bond
interest during the taxable year. $24,000 was distributed to
Jane Jones, an Arizona Resident and $12,000 to June Jones,
Share of fees $7,500 X 24.38% X 29.67% *
=
(543)
a nonresident of Arizona. The estate had $8,700 in U.S.
Government interest.
Net Arizona income
$3,561
The shares of federal distributable net income (DNI) are as
* Share of fees allocated to rental income
follows:
Jane Jones
$ 24,000
48.76%
June Jones
12,000
24.38%
Jane Jones share of the Arizona fiduciary adjustment is
Judy Jones Estate
13,222
26.86%
figured as follows:
Total
$ 49,222
100.00%
Share of non-Arizona municipal bond interest
$ 2,476 x 48.76%
$ 1,207
The estate’s Arizona taxable income is figured as
Share of U.S. Government Interest $ 8,700 x
4,242
follows:
48.76%
Federal taxable income
$ 11,957
Net modification
$(3,035)
Modifications increasing federal
taxable income: Non-Arizona
municipal bond interest
$ 2,476
Modifications decreasing federal
taxable income: U.S. Government
Interest
$ 8,700
Net Modifications
$(6,224)
Allocated to the estate @ 26.86%
$ (1,672)
Arizona taxable income
$ 10,285
14
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