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

Arizona Form 140NR

Subtraction for Assets Acquired after December 31, 2011, to

calculated as if the bonus depreciation is 10% of the amount of

determine the allowable subtraction.

federal bonus depreciation pursuant to IRC § 168(k).

Line 31 – Total Arizona Sourced Net Capital Gain or

Add all amounts together and enter the total on line 37

(Loss)

Line 38 - 2013 Arizona Depreciation Adjustment

Enter the total Arizona sourced net capital gain or (loss).

for Assets Placed in Service in Taxable Year

2013

Line 32 – Total Arizona Sourced Net Short-Term

For an asset placed in service during taxable year 2013,

Capital Gain or (Loss)

Arizona law allows a taxpayer that claimed bonus

Enter the amount of net short-term capital gain included on line

depreciation for the asset on the federal income tax return, to

20, in the ARIZONA Column.

make an election to claim Arizona bonus depreciation for

NOTE:

If you are not required to report dividend

that asset on the 2014 Arizona income tax return. This

distributions and/or short-term capital gains from mutual

election is made by taking a subtraction, on the 2014

funds on federal Form Schedule D, do not include the short-

Arizona income tax return, for Arizona bonus depreciation

term capital gain distributed by the mutual fund on line 32.

for the asset placed in service during tax year 2013. The

Arizona bonus depreciation is 10% of the amount of bonus

Line 33 - Total Net Long-Term Capital Gain or (Loss)

depreciation claimed on the federal income tax return.

Enter the amount from the worksheet, line 14, column (c).

On line 38, enter the amount of allowable Arizona

Line 34 - Net Long-Term Capital Gain From

depreciation adjustment for an asset placed in service during

the 2013 taxable year.

Assets Acquired After December 31, 2011

NOTE: For more information and examples of how to

Enter the amount from the worksheet, line 14, column (e).

calculate Arizona bonus depreciation, see the department’s

Line

Net

Long-Term

Capital

Gain

Income Tax Procedure, ITP 14-3.

Subtraction From Income

Line 39 - Adjustment for IRC § 179 Expense

Multiply the amount on line 34 by 20% (.20) and enter the

Not Allowed in Prior Years

result.

If you made an addition for IRC § 179 expense on your 2010,

Line 36 - Net Capital Gain from Investment in a

2011, and/or 2012 return(s), enter 20% (.20) of the amount

Qualified Small Business

added for 2010, 2011, and/or 2012.

Beginning in 2014, you may subtract the amount of any net

Line 40 - Reserved

capital gain included in federal adjusted gross income for the

Do not enter an amount on line 40.

taxable year derived from investment in a qualified small

Line 41 -

business as determined by the Arizona Commerce Authority

pursuant to A.R.S. § 41-1518.

Subtract lines 35 through 40 from line 30.

Caution: If the amount entered on line 36 includes a long-

Line 42 -

term capital gain from an investment made after December

Enter the amount from page 1, line 41.

31, 2011, you cannot include that portion of the net capital

Line 43 - Interest on U.S. Obligations

gain in your computation of the allowable subtraction for

any net long-term capital gain from assets acquired after

Enter the amount of interest income from U.S. Government

December 31, 2011 and included in federal adjusted gross

obligations included as income on line 16 in the ARIZONA

income. For more information, see the instructions on page

column. U.S. Government obligations include obligations

21 for the amount to enter on line 13 on the net long-term

such as savings bonds and treasury bills. You must reduce

capital gain worksheet.

this subtraction by any interest or other related expenses

incurred to purchase or carry the obligation. Reduce the

Line 37 - Recalculated Arizona Depreciation

subtraction only by the amount of such expenses included in

For assets placed in service in taxable years beginning

your Arizona gross income.

before December 31, 2012, enter the total amount of

Line 44 - Arizona Lottery Winnings

depreciation attributable to assets used in your Arizona

business

allowable

pursuant

IRC

You may subtract up to $5,000 of winnings received in 2014 for

§ 167(a) for the taxable year calculated as if you had elected

Arizona lottery prizes. Only subtract those Arizona lottery

not to claim bonus depreciation for eligible properties for

winnings that you included on line 22 in the ARIZONA column

federal purposes.

and reported on your federal income tax return.

For assets placed in service during taxable years beginning

If you subtract Arizona lottery winnings here, you may have

from and after December 31, 2012 through December 31,

to adjust the amount of gambling losses claimed as an

2013, the amount of the subtraction depends on the method

itemized deduction.

used to compute the depreciation for these assets.

Line 45 - Agricultural Crops Given to Arizona

NOTE:

For more information, see the department’s

Charitable Organizations

individual income tax procedure, ITP 14-3.

Arizona law allows a subtraction for qualified crop gifts

For assets placed in service in taxable years beginning from and

made during 2014 to one or more charitable organizations.

after December 31, 2013, enter the total amount of depreciation

To take this subtraction, all of the following must apply.

allowable pursuant to IRC § 167(a) for the taxable year

Instructions For Arizona Form 140nr - Nonresident Personal Income Tax Return - 2014 Page 9

Related Articles

Related forms

Related Categories