Arizona Form 141az - Arizona Fiduciary Income Tax Return

Arizona Form 141AZ

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

federal and state distributable income. If the amount shown

shows a difference between federal and state distributable income.

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

number, enter that amount here.

If the difference reported on the Arizona Form 165, Schedule

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

Line B2 - Non-Arizona Municipal Bond Interest

Enter the addition on line B3.

Arizona taxes interest received from non-Arizona municipal

If the difference reported on the Arizona Form 165, Schedule

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

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

did not include on the federal return.

Enter the subtraction on line B8.

You may exclude any expenses incurred to purchase or hold the

E. Claim of Right Adjustment for Amounts Repaid

bond(s).

Reduce the interest income by the amount of

in 2011

expenses that you could not deduct on your federal return.

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

Line B3 - Other Additions to Federal Taxable

During 2011, the estate or trust was required to repay

Income

amounts held under a claim of right.

Enter any other additions, including those shown below, to

The amount required to be repaid was subject to

federal taxable income. Attach your own schedule.

Arizona income tax in the year included in income.

A. Total Depreciation Included in Arizona Gross

The amount required to be repaid during 2011 was more

Income

than $3,000.

Enter the amount of depreciation deducted on the federal

The estate or trust took a deduction for the amount

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

repaid on its 2011 federal income tax return.

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

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

Subtractions From Federal Taxable Income.”

income tax return is reflected in the Arizona taxable

B. Net Operating Losses

income.

Arizona does not have specific provisions for calculating the net

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

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

federal income tax return that is reflected in the Arizona

loss deduction included in the federal taxable income is the

taxable income.

amount allowable for Arizona purposes. There are, however,

instances when the amount allowable for Arizona may be

For more information on the Arizona claim of right

different.

provisions, see Arizona Department of Revenue Individual

Income Tax Procedure ITP 95-1.

You must adjust the net operating loss deduction included in the

F. Claim of Right Adjustment for Amounts Repaid

federal taxable income if the estate or trust has already deducted

in Prior Taxable Years

any amount of the net operating loss included in federal taxable

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

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

net operating loss included in federal taxable income that was

During a year prior to 2011, the estate or trust was

previously deducted for Arizona purposes.

required to repay amounts held under a claim of right.

Usually, Arizona conforms to the federal net operating loss

The estate or trust computed its tax for that prior year

and the carryback provisions.

Arizona, however, did not

under Arizona's claim of right provisions.

conform to the special federal net operating loss rules for

A net operating loss or capital loss was established due

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

to the repayment made in the prior year.

taxpayer could have elected to carry the net operating loss

The estate or trust is entitled to take that net operating

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

loss or capital loss carryover into account when

election would have been allowed under I.R.C. §

computing its 2011 Arizona taxable income.

172(b)(1)(h) as amended by the American Recovery and

Reinvestment Act of 2009 or the Worker, Homeownership,

The amount of the loss carryover included in the

and Business Assistance Act of 2009.

If a taxpayer

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

deducted a federal net operating loss carryback under the

amount allowed to be taken into account for Arizona

federal American Recovery and Reinvestment Act of 2009 or the

purposes.

federal Worker, Homeownership, and Business Assistance

Enter the amount by which the loss carryover included in the

Act of 2009, see the instructions for line B8, (#N).

federal income is more than the amount allowed for the

For information on deducting a net operating loss carryback in

taxable year under Arizona law.

cases where a taxpayer did not make an election under I.R.C. §

G. Nonqualified Withdrawals From 529 College

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

Savings Plans

Procedure ITP 99-1.

Use this adjustment if both of the following apply.

C. Annuity Income in Excess of Contributions

The estate or trust received a nonqualified withdrawal

from a 529-college savings plan.

Use this adjustment if both of the following apply.

The amount of withdrawal was not included in the

The estate or trust received annuity income and the first

federal taxable income.

payment received from the annuity was before

December 31, 1978.

The amount that the fiduciary must add is the amount of

withdrawal, but no more than the difference between the

The sum of the proceeds received from the annuity in all

amount of contributions subtracted in prior years and the

taxable years prior to and including the current tax year

amount added in any prior years.

exceeds the total consideration premiums paid.

D. Excess of a Partner's Share of Partnership

A nonqualified withdrawal is a withdrawal other than any of

Taxable Income or Loss

the following:

Arizona Form 141az - Arizona Fiduciary Income Tax Return - 2011 Page 4

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