Arizona Form 141az - Arizona Fiduciary Income Tax Return

Arizona Form 141AZ

amount contributed during the year up to a total of $750.

H. Installment Sale Income From Another State

Taxed by the Other State in a Prior Taxable Year

N. 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 rules for

included in Arizona gross income in the current taxable year.

2008 and 2009, an estate or trust could have elected to carry

This subtraction does not apply to nonresident estates or

the net operating loss back for 3, 4, or 5 years, instead of the

normal 2 years. This election would have been allowed under

trusts.

I.R.C. § 172(b)(1)(H) as amended by the American Recovery

I. Subtraction for World War II Victims

and Reinvestment Act of 2009 or the Worker, Homeownership,

The estate or trust may subtract distributions made to it for the

and Business Assistance Act of 2009.

decedent’s or settlor’s persecution by Nazi Germany or any other

Arizona did not adopt the special federal net operating loss rules

Axis regime for racial, religious, or political reasons. The estate

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

or trust may also subtract distributions made for the persecution

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

of the ancestors of the decedent or settlor. If the estate or trust is

computed under I.R.C. § 172 in effect prior to the enactment of

the first recipient of such distributions, enter the amount of the

those special rules.

distributions that it had 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

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

the decedent or settlor was persecuted by Nazi Germany or any

federal net operating loss under I.R.C. § 172(b)(1)(H), the estate

other Axis regime for racial, religious, or political reasons

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

before, during, or immediately after World War II. The income

the net operating loss carry forward would have been allowed as

must be attributable to, derived from, or related to assets that

a deduction on the estate’s or trust’s 2011 federal income tax

were stolen or hidden from the decedent or settlor. If the estate

return, if the election described in I.R.C. § 172(b)(1)(H) had not

or trust is the first recipient of such income, enter the amount of

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

income that it had to include in the estate’s or trust’s federal

that exceeds the actual net operating loss carry forward that was

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

have been allowed as a deduction on the estate’s or trust’s 2011

J. Recalculated

Arizona Depreciation Resident

federal income tax return, if the election described in I.R.C. §

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

I.R.C. § 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 I.R.C. §

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

Basis

Adjustment

for

Property

Sold

arriving at Arizona gross income.

Otherwise 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 the

or trust may have had a loss from prior year Arizona

requirement to add back all depreciation with respect to that

business operations. However, the loss cannot offset this

property on tax returns for all taxable years beginning from and

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

after December 31, 1999; enter the amount of depreciation that

Arizona source net operating loss deduction for federal

was allowed pursuant to I.R.C. § 167(a), to the extent that the

purposes. The estate or trust can only take this subtraction

amount has not already reduced Arizona taxable income in the

if the as if federal net operating loss deduction for 2011

current or prior years. (Note: The practical effect of this is to

includes Arizona source losses that have not been absorbed

allow a subtraction for the difference in basis for any asset for

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

which bonus depreciation has been claimed on the federal return.)

or trust cannot subtract any amount of that net operating

A nonresident estate or trust may make this adjustment for only

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

property that was used in an Arizona business.

intervening years. The estate or trust also cannot take a

subtraction for any amount that has already been deducted

L. Federal Estate Taxes Paid by an Estate

for Arizona purposes.

An estate may subtract the amount of federal estate tax paid

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

federal estate taxes paid in 2011.

M. Contributions to 529 College Savings Plans

For taxable years 2008 through 2012, an estate or trust may

subtract amounts it contributes to 529 college savings plans

during the taxable year. The estate or trust may subtract the

Arizona Form 141az - Arizona Fiduciary Income Tax Return - 2011 Page 7

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