Instructions For Arizona Form 141az - 2013 (Page 7 of 15) in pdf

Arizona Form 141AZ

K. Federal Estate Taxes Paid by an Estate

The subtraction is the greater of the wholesale market price

An estate may subtract the amount of federal estate tax paid

or the most recent sale price for the crop given. The amount

by the estate in the current taxable year. Enter the amount of

of the subtraction cannot include any amount deducted under

federal estate taxes paid in 2013.

IRC § 170 with respect to the crop contribution that exceeds

L. Contributions to 529 College Savings Plans

the cost of producing the contributed crop.

An estate or trust may subtract amounts it contributes to 529

To determine if the estate’s or trust’s crop gift qualifies for

college savings plans during the taxable year. The estate or

this subtraction, see Income Tax Procedure, ITP 12-1.

trust may subtract the amount contributed during the year up to a

G. Installment Sale Income From Another State

total of $2,000.

Taxed by the Other State in a Prior Taxable Year

M. Net Operating Loss Adjustment

The estate or trust may subtract any income from an installment

NOTE: This subtraction applies to only those estates or

sale that has been properly subjected to income tax in another

trusts that made an election under the special federal net

state in a prior tax year. Enter the amount of such income

operating loss rules for 2008 and 2009. Under these federal

included in Arizona gross income in the current taxable year.

rules for 2008 and 2009, an estate or trust could have elected

This subtraction does not apply to nonresident estates or

to carry the net operating loss back for 3, 4, or 5 years,

trusts.

instead of the normal 2 years. This election would have been

H. Subtraction for World War II Victims

allowed under IRC § 172(b)(1)(H) as amended by the

American Recovery and Reinvestment Act of 2009 or the

The estate or trust may subtract distributions made to it for

Worker, Homeownership, and Business Assistance Act of 2009.

the decedent’s or settlor’s persecution by Nazi Germany or

any other Axis regime for racial, religious, or political

Arizona did not adopt the special federal net operating loss rules

reasons. The estate or trust may also subtract distributions

for losses incurred during 2008 or 2009. For Arizona purposes,

made for the persecution of the ancestors of the decedent or

estates or trusts must deduct a net operating loss as if the loss was

settlor. If the estate or trust is the first recipient of such

computed under IRC § 172 in effect prior to the enactment of

distributions, enter the amount of the distributions that it had

those special rules.

to include in the estate’s or trust’s federal taxable income.

Resident Estate or Trust

The estate or trust may also subtract certain items of income,

If the estate or trust made an election to deduct a 2008 or 2009

if the decedent or settlor was persecuted by Nazi Germany

federal net operating loss under IRC § 172(b)(1)(H), the estate or

or any other Axis regime for racial, religious, or political

trust may have to enter an amount here. Figure how much of the

reasons before, during, or immediately after World War II.

net operating loss carry forward would have been allowed as a

The income must be attributable to, derived from, or related

deduction on the estate’s or trust’s 2012 federal income tax

to assets that were stolen or hidden from the decedent or

return, if the election described in IRC § 172(b)(1)(H) had not

settlor. If the estate or trust is the first recipient of such

been made in the year of the loss. On line B8, enter the amount

income, enter the amount of income that it had to include in

that exceeds the actual net operating loss carry forward that was

the estate’s or trust’s federal taxable income.

deducted in arriving at federal taxable income.

A nonresident estate or trust should enter such payments only

Nonresident Estate or Trust

to the extent included in Arizona taxable income.

Figure how much of the net operating loss carry forward would

I. Recalculated Arizona Depreciation

have been allowed as a deduction on the estate’s or trust’s 2013

federal income tax return, if the election described in IRC §

Resident Estate or Trust

172(b)(1)(H) had not been made in the year of the loss. Then

Enter the total amount of depreciation allowable pursuant to

figure how much of the carry forward computed under that

IRC § 167(a) for the taxable year calculated as if the

method was derived from Arizona source losses. The amount the

taxpayer had elected not to claim bonus depreciation for

estate or trust may take as a subtraction is the difference between

eligible properties for federal purposes.

the amount of Arizona source net operating loss carryover

Nonresident Estate or Trust

allowable as a deduction for federal purposes under the as if

Enter the total amount of depreciation attributable to assets

calculation and the amount of the Arizona source net operating

used in an Arizona business allowable pursuant to IRC §

loss deduction actually taken for federal purposes that the estate

167(a) for the taxable year calculated as if the taxpayer had

or trust included in its Arizona gross income. On line B8, enter

elected not to claim bonus depreciation for eligible

the amount of allowable Arizona source loss carry forward

properties for federal purposes.

deduction that exceeds the actual amount of Arizona source net

operating loss carry forward deduction that was deducted in

J. Basis Adjustment for Property Sold or Otherwise

arriving at Arizona gross income.

Disposed of During the Taxable Year

With respect to property that is sold or otherwise disposed of

NOTE: As an Arizona nonresident estate or trust, the estate

during the taxable year by a taxpayer who has complied with

or trust may have had a loss from prior year Arizona

business operations. However, the loss cannot offset this

the requirement to add back all depreciation with respect to

year’s income unless the as if calculation results in an

that property on tax returns for all taxable years beginning

Arizona source net operating loss deduction for federal

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

purposes. The estate or trust can only take this subtraction

depreciation that was allowed pursuant to IRC § 167(a), to

if the as if federal net operating loss deduction for 2013

the extent that the amount has not already reduced Arizona

includes Arizona source losses that have not been absorbed

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

practical effect of this is to allow a subtraction for the

by non-Arizona income in any intervening years. The estate

difference in basis for any asset for which bonus

or trust cannot subtract any amount of that net operating

loss that has been absorbed by non-Arizona income in any

depreciation has been claimed on the federal return.) A

intervening years. The estate or trust also cannot take a

nonresident estate or trust may make this adjustment for only

subtraction for any amount that has already been deducted

property that was used in an Arizona business.

for Arizona purposes.

Instructions For Arizona Form 141az - 2013 Page 7

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