Instructions For Arizona Form 141az - 2013 (Page 4 of 15) in pdf

Arizona Form 141AZ

Arizona Column

For information on deducting a net operating loss carryback in

cases where a taxpayer did not make an election under IRC §

Enter that part of each item of income reported in the federal

172(b)(1)(H), see Arizona Department of Revenue Income Tax

column that is derived from Arizona sources. Intangible

Procedure ITP 99-1.

income will not be considered to be from Arizona sources

except where it is part of a business, trade, or occupation

C. Annuity Income in Excess of Contributions

carried on in Arizona.

Make this adjustment if both of the following apply.

1. The estate or trust received annuity income and the first

Schedule B - Fiduciary Adjustment

payment received from the annuity was before

Fiduciary

adjustment

increasing

federal

December 31, 1978.

taxable income

2. The sum of the proceeds received from the annuity in all

taxable years prior to and including the current tax year

Use lines B1 through B4 to figure the amount of fiduciary

exceeds the total consideration premiums paid.

adjustment that increases federal taxable income.

D. Excess of a Partner's Share of Partnership

Line B1 - Positive Arizona Fiduciary Adjustment

Taxable Income or Loss

From Another Estate or Trust

Make this adjustment if the Arizona Form 165, Schedule K-1,

Use this adjustment only if the estate’s or trust’s Arizona

shows a difference between federal and state distributable income.

Form 141AZ, Schedule K-1, indicates a difference between

If the difference reported on the Arizona Form 165, Schedule

federal and state distributable income. If the amount shown

K-1, is a positive number, enter that difference as an addition.

on the Arizona Form 141AZ, Schedule K-1, is a positive

Enter the addition on line B3.

number, enter that amount here.

If the difference reported on the Arizona Form 165, Schedule

Line B2 - Non-Arizona Municipal Bond Interest

K-1, is a negative number, enter that difference as a subtraction.

Enter the subtraction on line B8.

Arizona taxes interest received from non-Arizona municipal

bonds. Enter the amount of this type of interest income that you

E. Claim of Right Adjustment for Amounts Repaid

did not include on the federal return.

in 2013

You may exclude any expenses incurred to purchase or hold the

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

bond(s).

Reduce the interest income by the amount of

1. During 2013, the estate or trust was required to repay

expenses that you could not deduct on your federal return.

amounts held under a claim of right.

Line B3 - Other Additions to Federal Taxable

2. The amount required to be repaid was subject to

Income

Arizona income tax in the year included in income.

Enter any other additions, including those shown below, to

3. The amount required to be repaid during 2013 was more

federal taxable income. Attach your own schedule.

than $3,000.

A. Total Depreciation Included in Arizona Gross

4. The estate or trust took a deduction for the amount

Income

repaid on its 2013 federal income tax return.

5. The deduction taken on the estate’s or trust’s federal

Enter the amount of depreciation deducted on the federal

income tax return is reflected in the Arizona taxable

return that is included in Arizona gross income. If you make

income.

an entry here, also see the instructions for line B8, “Other

Subtractions From Federal Taxable Income.”

If all of the above apply, enter the amount deducted on the

B. Net Operating Losses

federal income tax return that is reflected in the Arizona

taxable income.

Arizona does not have specific provisions for calculating the net

operating loss of estates or trusts. Generally, the net operating loss

For more information on the Arizona claim of right

deduction included in the federal taxable income is the amount

provisions, see Arizona Department of Revenue Individual

allowable for Arizona purposes. There are, however, instances

Income Tax Procedure ITP 95-1.

when the amount allowable for Arizona may be different.

F. Claim of Right Adjustment for Amounts Repaid

in Prior Taxable Years

You must adjust the net operating loss deduction included in the

federal taxable income if the estate or trust has already deducted

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

any amount of the net operating loss included in federal taxable

1. During a year prior to 2013, the estate or trust was

income for Arizona purposes. Enter on line B3, the amount of

required to repay amounts held under a claim of right.

net operating loss included in federal taxable income that was

2. The estate or trust computed its tax for that prior year

previously deducted for Arizona purposes.

under Arizona's claim of right provisions.

Usually, Arizona conforms to the federal net operating loss

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

and the carryback provisions. Arizona, however, did not

to the repayment made in the prior year.

conform to the special federal net operating loss rules for

4. The estate or trust is entitled to take that net operating

2008 and 2009. Under the special rules for 2008 and 2009, a

loss or capital loss carryover into account when

taxpayer could have elected to carry the net operating loss

computing its 2013 Arizona taxable income.

back for 3, 4, or 5 years, instead of the normal 2 years. This

election would have been allowed under IRC § 172(b)(1)(H)

5. The amount of the loss carryover included in the

as amended by the American Recovery and Reinvestment

estate’s or trust’s federal income is more than the

Act of 2009 or the Worker, Homeownership, and Business

amount allowed to be taken into account for Arizona

Assistance Act of 2009. If a taxpayer deducted a federal net

purposes.

operating loss carryback under the federal American Recovery

Enter the amount by which the loss carryover included in the

and Reinvestment Act of 2009 or the federal Worker,

federal income is more than the amount allowed for the

Homeownership, and Business Assistance Act of 2009, see

taxable year under Arizona law.

the instructions for line B8, (M).

Instructions For Arizona Form 141az - 2013 Page 4

Related Articles

Related forms

Related Categories