Instructions For Arizona Form 141az - 2013 (Page 9 of 15) in pdf

Arizona Form 141AZ

Lines 15a through 15e – Net Capital Gain or (Loss)

The schedule should show the same information required on

and Net Long-Term Capital Gain Subtraction for

lines C1 through C10.

assets acquired after December 31, 2011.

Line C11 -

Beginning in 2013, the estate or trust may subtract a

Add the amounts on lines C1 through C10 in column (b).

percentage of any net long-term capital gain included in the

Add the percents on lines C1 through C10 in column (c). If

federal taxable income of a resident estate or trust (or the

the fiduciary completed an additional schedule because there

Arizona gross income of a nonresident estate or trust) that is

are more than 10 beneficiaries, include the amounts from the

derived from an investment in an asset acquired after

additional schedule on line C11.

December 31, 2011. For 2013, the percentage is 10% (.10).

Line C12 -

The estate or trust must complete the worksheet at the end of

these instructions, Worksheet for Net Long-Term Capital

In column (b), enter the fiduciary’s share of the federal

Gains Subtraction for Assets Acquired after December 31,

distributable net income. In column (c), enter the percentage

2011, to take the allowable subtraction.

of the fiduciary’s share of federal distributable net income

computed in accordance with the documents or laws

Line 15a - Total Net Capital Gain or (loss)

controlling distribution of the estate or trust.

Enter the total net capital gain or (loss).

Lines C13 through C16 -

Line 15b - Total Net Short-Term Capital Gain or (Loss)

Complete lines C13 through C16 as instructed on the form.

Enter the total amount of net short-term capital gain or (loss).

Schedule D - Federal Distributable Net

Line 15c - Total Net Long-Term Capital Gain or (Loss)

Income From Arizona Sources

Enter the total net long-term capital gain or (loss) from the

worksheet on line 12, column (b).

Schedule D is used to determine the net estate or trust

Line 15d - Net Long-Term Capital Gain From Assets

income reportable to Arizona by nonresident beneficiaries.

Acquired after December 31, 2011

Use the information in Schedule D to complete Forms

141AZ, Schedule K-1(NR) for nonresident beneficiaries.

Enter the total net long-term capital gain from assets acquired

after December 31, 2011, from the worksheet, line 12, column

The fiduciary should complete Schedule D only if the trust

(e).

or estate has Arizona nonresident beneficiaries. If the trust

or estate does not have any nonresident beneficiaries, the

Line 15e - Net Long-Term Capital Gain Subtraction

fiduciary should skip Schedule D.

from Income

Lines D1 through D9 -

Multiply the amount on line 15d by 10% (.10) and enter the

In column (b), enter an amount for each item from which

result on line 15e.

federal distributable net income is comprised. The total

Line 16 - Arizona Taxable Income

entered on line D9, column (b), should equal the federal

Subtract lines 14 and 15e from line 13. Enter the difference.

distributable net income.

Line 17 - Tax Amount

In column (c), enter that portion of federal distributable net

Compute the tax on the amount on line 16 from the tax table

income derived from Arizona sources. Such income includes

on page 15 of these instructions.

Arizona rental and business income, and gains on the sale of

Arizona property.

Line 18 - Credit for Taxes Paid to Another State or

Country

Schedule E - Questions

If both Arizona and another state or country considers an estate or

trust to be a resident, Arizona will allow the estate or trust a tax

Answer the questions on lines E1 through E7.

credit against the Arizona income tax liability for taxes paid to the

Tax Computation

other state or country.

The credit allowed on the Arizona fiduciary return is subject

Line 12 - Electing Small Business Trust (ESBT)

to the following conditions:

Income

1. The credit is allowed only for the proportion of the taxes

Enter the federal taxable income of Electing Small Business

paid to the other state or country that the income

Trusts (ESBT) from the IRC § 641(c) worksheet attached to

taxable to Arizona and also subject to tax in the other

your federal Form 1041. Attach a copy of the worksheet to

state or country bears to the entire income on which the

the Arizona return. A nonresident trust should enter the

taxes paid to the other state or country are imposed.

amount of ESBT income received from the S corporation

2. The credit cannot exceed the proportion of the tax

that was derived from sources within Arizona.

payable to Arizona that the income subject to tax in the

Line 13 -

other state or country and also taxable to Arizona bears

to the entire income that is taxable to Arizona.

Add lines 11 and 12. Enter the total.

3. The credit is not allowed for taxes paid to the other state

Line 14 - Income of a Trust Established as a Medical

or country on income from sources within Arizona.

Savings Account

If claiming this tax credit, the estate or trust must attach the

Arizona law provides a subtraction of income earned during

following items to the Arizona Form 141AZ:

the taxable year by a trust established as a medical savings

1. A copy of the other state or country's income tax return.

account. Subtract such amounts only to the extent the trust

2. A schedule showing how the credit was calculated.

included the income in Arizona gross income.

Instructions For Arizona Form 141az - 2013 Page 9

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