Form 140nr - Nonresident Personal Income Tax Return (Page 7 of 20) in pdf

Form 140NR

Line B16 - Arizona Income

because of the difference between the federal and former

Arizona treatment. If your Arizona taxable income includes

Complete line B16 as instructed on the form.

items previously deducted for Arizona purposes, you must add

Line B17 - Arizona Percentage

such amounts to your Arizona gross income.

Divide line B16 by line B15 and enter the result. (Do not

D. Claim of Right Adjustment for Amounts Repaid

enter more than 100 percent.) This is the Arizona

in 2011

percentage of your total income.

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

Example:

1. During 2011, you were required to repay amounts held

Arizona

Federal

Arizona percentage

under a claim of right.

Gross

Adjusted

2. The amount required to be repaid was subject to

Income from

Gross Income

Arizona income tax in the year included in income.

line B16

from line B15

3. The amount required to be repaid during 2011 was more

$ 7,500

$ 30,000

$7,500/30,000 = 25%

than $3,000.

4. You took a deduction for the amount repaid on your

Determining Additions to Income

2011 federal income tax return.

5. The deduction taken on your federal income tax return

Line C18 - I.R.C. § 179 Expense in Excess

is reflected in your Arizona taxable income.

of Allowable Amount

If the above apply, enter the amount deducted on your

Enter the amount of I.R.C. § 179 expense included in your

federal income tax return which is reflected in your Arizona

Arizona gross income that exceeds $25,000. If you make an

taxable income.

entry here, also see the instructions for line D30, “Adjustment

For more information on the Arizona claim of right

for I.R.C. § 179 Expenses not Allowed.”

provisions, see Arizona Department of Revenue Individual

Line C19 - Total Depreciation Included in

Income Tax Procedure ITP 95-1.

Arizona Gross Income

E. Claim of Right Adjustment for Amounts Repaid

Enter the amount of depreciation deducted on the federal

in Prior Taxable Years

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

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

an entry here, also see the instructions for line D31, “Other

1. During a year prior to 2011 you were required to repay

Subtractions from Income”.

income held under a claim of right.

Line C20 - Other Additions to Income

2. You computed your tax for that prior year under

Use line C20 if any of the special circumstances below

Arizona’s claim of right provisions.

apply. Attach your own schedule to the back of your return,

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

explaining any amounts entered on line C20.

to the repayment made in the prior year.

A. Fiduciary Adjustment

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

A fiduciary uses Form 141AZ, Schedule K-1(NR), to report to

loss carryover into account when computing your 2011

you your share of the fiduciary adjustment from the trust or

Arizona taxable income.

estate. Line 5 of Form 141AZ, Schedule K-1(NR), shows your

5. The amount of the loss carryover included in your

share of the fiduciary adjustment from the estate or trust.

Arizona gross income is more than the amount allowed

Depending on your situation, you may either add (line C20)

to be taken into account for Arizona purposes.

or subtract (line D31) this amount.

Enter the amount by which the loss carryover included in

If the amount reported on line 5 of your Arizona Form

your Arizona gross income is more than the amount allowed

141AZ, Schedule K-1(NR), is a positive number, enter that

for the taxable year under Arizona law.

amount as an addition on line C20.

F. Addition to S Corporation Income Due to Credits

If the amount on line 5 of your Arizona Form 141AZ,

Claimed

Schedule K-1(NR), is a negative number, enter that amount

Shareholders of an S corporation who claim a credit passed

as a subtraction from income on line D31.

through from an S corporation must make an addition to

B. Agricultural Water Conservation System Credit

income for the amount of expenses disallowed by reason of

If you take this credit (Form 312), you cannot deduct any expenses

claiming the credit.

for which you claim the credit. If you take this credit, enter the

An S corporation that passes the following credits through to

amount of such expenses that you deducted on your federal return.

its shareholders must notify each shareholder of his or her

pro rata share of the adjustment. You must enter an amount

C. Items Previously Deducted for Arizona Purposes

on this line when claiming any of the following credits.

Arizona statutes prohibit a taxpayer from deducting items



Agricultural water conservation system credit

more than once. However, under the operation of former



Arizona law (1989 and prior), you could deduct certain items

Environmental technology facility credit



in greater amounts for Arizona purposes than federal purposes.

Pollution control credit

Investment interest and passive activity losses were such items.



Credit for solar hot water heater plumbing stub outs and

In some cases, you could have deducted such amounts in their

electric vehicle recharge outlets

entirety on the Arizona return. For federal purposes, the



Credit for employment of TANF recipients

deduction for these items was limited, with the unused portions



Agricultural pollution control equipment credit

being carried forward and deducted in future years. Your



Arizona return may include these previously deducted items

Motion picture credits

Form 140nr - Nonresident Personal Income Tax Return Page 7

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