Instructions For Arizona Form 140nr - Nonresident Personal Income Tax Return

Arizona Form 140NR

1. You must be engaged in the business of farming or

5. You are entitled to take that net operating loss or capital

processing agricultural crops; and

loss carryover into account when computing your 2014

2. The crop must be grown in Arizona; and

Arizona taxable income.

3. You made your gift to a charitable organization located

6. The amount of the loss carryover allowed to be taken

in Arizona that is exempt from Arizona income tax.

into account for Arizona purposes is more than the

The subtraction is the greater of the wholesale market price

amount included in your Arizona gross income.

or the most recent sale price for the contributed crop.

Enter the amount by which the loss carryover allowed for

The amount of subtraction cannot include any amount

the taxable year under Arizona law is more than the amount

deducted pursuant to IRC § 170 with respect to crop

included in your Arizona gross income.

For more

contribution that exceeds the cost of producing the

information on the Arizona claim of right provisions, see

contributed crop.

To determine if your crop gift qualifies

income tax procedure, ITP 95-1.

for this subtraction, see income tax procedure, ITP 12-1.

D. Certain Expenses Not Allowed for Federal

Line 46 - Other Subtractions From Income

Purposes

Use line 46 if any of the following special circumstances

You may subtract some expenses that you cannot deduct on

apply. Include your own schedule with the return, explaining

your federal return when you claim certain federal tax

any amounts entered here.

credits. These federal tax credits include the following.



A. Certain Wages of American Indians

the federal work opportunity credit



the empowerment zone employment credit

Enrolled members of American Indian tribes may subtract



the credit for employer-paid social security taxes on

wages earned while living and working on their tribe’s

employee cash tips

reservation. You can subtract only those amounts that you



the Indian employment credit

included on line 15, ARIZONA column. The federal

If you claimed any of the above federal tax credits for 2014,

government must recognize these tribes.

enter the portion of wages or salaries attributable to Arizona

For more information, see income tax ruling, ITR 96-4.

source income that you paid or incurred during the taxable

year that is equal to the amount of those federal tax credits

B. Qualified Wood Stove, Wood Fireplace, or Gas

you claimed.

Fired Fireplace

E. Basis Adjustment for Property Sold or Otherwise

Arizona law provides a subtraction for converting an existing

Disposed of During the Taxable Year

fireplace to one of the following.



a qualified wood stove

With respect to property used in an Arizona business that is



sold or otherwise disposed of during the taxable year by a

a qualified wood fireplace



taxpayer who has complied with the requirement to add back

a gas fired fireplace and non-optional equipment directly

all depreciation with respect to that property on tax returns

related to its operation

for all taxable years beginning from and after December 31,

You may subtract up to $500 of the costs incurred for

1999, enter the amount of depreciation that has been allowed

converting an existing fireplace on your property located in

pursuant to IRC § 167(a) to the extent that the amount has

Arizona. When you figure your subtraction, do not include

not already reduced Arizona taxable income in the current or

taxes, interest, or other finance charges.

prior years. (Note: The practical effect of this is to allow a

A qualified wood stove or a qualified wood fireplace is a

subtraction for the difference in basis for any asset for which

residential wood heater that was manufactured on or after July

bonus depreciation has been claimed on the federal return.)

1, 1990, or sold at retail on or after July 1, 1992. The

You may make this adjustment only for property that was

residential wood heater must also meet the U.S. Environmental

used in your Arizona business.

Protection Agency’s July 1990 particulate emissions standards.

F. Fiduciary Adjustment

A qualified gas fired fireplace is any device that burns

If the amount on Form 141AZ, Schedule K-1(NR), line 5, is

natural or liquefied petroleum gas as its fuel through a

a negative number, enter that amount as a subtraction from

burner system that is permanently installed in the fireplace.

income on line 46.

The conversion of an existing wood burning fireplace to

G. Net Operating Loss Adjustment

noncombustible gas logs that are permanently installed in

NOTE: This subtraction applies to only those individuals

the fireplace also qualifies as a gas fired fireplace.

who made an election under the special federal net

C. Claim of Right Adjustment for Amounts Repaid

operating loss rules for 2008 and 2009. Under the special

in Prior Taxable Years

rules for 2008 and 2009, you could have elected to carry the

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

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

normal 2 years. This election would have been allowed

1. During a year prior to 2014, you were required to repay

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

income held under a claim of right.

Recovery and Reinvestment Act of 2009 or the Worker,

2. The amount required to be repaid was subject to

Homeownership, and Business Assistance Act of 2009.

Arizona income tax in the year included in income.

Arizona did not adopt the special federal net operating loss

3. You computed your tax for that prior year under

rules for losses incurred during 2008 or 2009. For Arizona

Arizona’s claim of right provisions.

purposes, you must deduct an Arizona source net operating

loss as if the loss was computed under IRC § 172 in effect

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

prior to the enactment of those special rules. If you made an

to the repayment made in the prior year.

Instructions For Arizona Form 140nr - Nonresident Personal Income Tax Return - 2014 Page 10

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