Arizona Form 120s - S Corporation Income Tax Return

Arizona Form 120S

Lines 1 through 5 - Capital Gain (Loss) Reported on

Worksheet Instructions

Federal Schedule D

Purpose of the Worksheet

Enter the long-term capital gain (loss) from each federal form

Beginning in 2013, a subtraction is available for a percentage

listed that was reported on the S corporation’s federal

of any net long-term capital gain that is from an investment in

Schedule D and included on Schedule K of federal

an asset acquired after December 31, 2011, and included in

Form 1120-S.

an individual taxpayer’s federal adjusted gross income or the

Line 6 - Subtotal

federal taxable income of an estate or trust.

For each column, add the amounts on lines 1 through 5 and

To take the allowable subtraction, the taxpayer must know

enter the total.

whether the capital gain (loss) is considered short-term or

long-term. Only the net long-term capital gain from assets

Line 7 - Long-Term Capital Loss Carryover

acquired after December 31, 2011, is used to compute the

If the S corporation used a long-term capital loss carryover

allowable

subtraction.

For

information

about

from a previous tax year to reduce its long-term capital gain for

determining whether a gain (loss) is short-term or long-term,

the current taxable year, enter the amount used to apply to

see federal Publication 544 at

gains from assets acquired before January 1, 2012, in

Who Should Complete the Worksheet?

column (b).

For tax year 2013, there should be no amount entered on

The S corporation can use this worksheet to calculate each

line 7, column (c).

shareholder’s distributive share of the net long-term capital

gain (loss) included in Schedule K of federal Form 1120-S

Line 8 - Net Long-Term Capital Gain (Loss)

for assets purchased after December 31, 2011.

Subtract line 7 from line 6 and enter the difference in each

Do not complete this worksheet if either of the following apply:

column.



The S corporation does not have any capital gain (loss)

For each shareholder, enter the distributive share of the

to report for the current tax year; or

amounts from line 8 on Arizona Form 120S, Schedule K-1 or



The S corporation does not have any net capital gain

on Part II of Arizona Form 120S, Schedule K-1(NR).

(loss) from asset(s) acquired after December 31, 2011, to

report for the current tax year.

Keep the completed worksheet for the S corporation’s

records.

Columns (a) through (c)



Column (a) is the total amount of net long-term capital

gain (loss) reported on Schedule D or other federal

forms/schedules.



Column (b) is the amount of the net long-term capital

gain (loss) included in column (a) for assets acquired

before January 1, 2012.



Column (c) is the amount of the net long-term capital

gain (loss) included in column (a) for assets acquired

after December 31, 2011.

Arizona Form 120s - S Corporation Income Tax Return - 2013 Page 12

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