Instructions For Form 331 - Arizona Credit For Donation Of School Site

Arizona Form 331

Line 4 -

The total of the credit allowed to all partners may not exceed

the amount that would have been allowed for a sole owner.

Enter the recording number of the property conveyance.

The partnership must furnish each partner with a copy of

Line 5 -

pages 1 and 2 of Form 331. Each partner must complete

Enter the value of the donated property based on appraisal.

Part 4 and Part 5.

Line 6 -

Part 4 - Available Credit Carryover

Multiply the amounts on line 5 in each column by 30% (.30).

Lines 18 through 23 -

Line 7 -

Complete Part 4 only if the allowable credit for donation of

Add the amounts on line 6 in each column. Enter the total.

school site for prior taxable years exceeded the Arizona income

tax liability for those taxable years. Calculate the total available

Line 8 -

carryover of the credit for donation of school site on page 2,

Enter the aggregate line 7 totals from the continuation sheets,

Part 4, lines 18 through 23.

if more than three parcels were donated.

Partners of a partnership or shareholders of an S corporation

Line 9 -

should complete Part 4 only if their allowable credit for

Add line 7 and line 8. Enter the total. This is the current

donation of school site for prior taxable years exceeded their

taxable year’s credit.

Arizona income tax liability for those taxable years.

Enter the applicable taxable year(s) in column (a) on lines 18

Part 2 - S Corporation Credit Election and

through 22. In column (b), enter the credit originally computed

Shareholder's Share of Credit

for that taxable year. In column (c), enter the amount of the

Line 10 - S Corporation Credit Election

credit from that taxable year which has already been used.

Subtract the amount in column (c) from column (b) and enter

S corporations must complete line 10. The S corporation must

the difference in column (d). Add the amounts entered on

make an irrevocable election to either claim the credit or pass

lines 18 through 22 in column (d). Enter the total on line 23,

the credit through to its shareholders. The election statement

column (d). This is the total credit carryover available for the

must be signed by one of the officers of the S corporation

current taxable year.

who is also a signatory to Arizona Form 120S.

Part 5 - Total Available Credit

Lines 11 through 14 -

Line 24 -

If the S corporation elects to pass the credit through to its

shareholders, it must also complete lines 11 through 14.

Individuals,

exempt

organizations

with

UBTI,

and

corporations (including S corporations that elected to claim

The S corporation must complete Part 1. Then, complete Part 2,

the credit) - enter the current year's credit from Part 1, line 9.

lines 11 through 14, separately for each shareholder.

S corporation shareholders - enter the credit from Part 2, line 13.

Each S corporation shareholder is entitled to only a pro rata

share of pass-through credit based on ownership interest in

Partners of a partnership - enter the credit from Part 3, line 17.

the S corporation. The total of the credit allowed to all

This is the current taxable year's credit for donation of school site.

shareholders may not exceed the amount that would have

been allowed for a sole owner.

Line 25 -

The S corporation must furnish each shareholder with a copy

Enter the amount from Part 4, line 23, column (d). This is the

of pages 1 and 2 of Form 331. Each shareholder must

total available credit carryover.

complete Part 4 and Part 5.

Line 26 -

NOTE to individual shareholders of an S corporation: The

Add line 24 and line 25. This is the total available credit for

credit for donation of school site is in lieu of any deduction

donation of school site that may be applied to the current

pursuant to §170 of the Internal Revenue Code. If you are

taxable year's tax liability.

claiming the credit in Part 2, line 13, you must exclude the

amount of the charitable deduction otherwise allowed for the

Corporations, exempt organizations with UBTI, and

donation of the school site, which is the amount in Part 2, line

S corporations - enter the total here and on Form 300, Part 1,

line 10, column (c).

14. See the example on page 1 of these instructions.

Individuals - enter the total here and on Form 301, Part 1 line 16,

Part 3 - Partner's Share of Credit

column (c).

Lines 15 through 17 -

The partnership must complete Part 1. Then, complete Part 3,

lines 15 through 17, separately for each partner.

Each partner is entitled to only a pro rata share of the credit

based on the partner’s ownership interest in the partnership.

Instructions For Form 331 - Arizona Credit For Donation Of School Site - 2014 Page 2

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