Schedule K-1(Nr) (Arizona Form 165) - Arizona Nonresident And Out-Of-State Partner'S Share Of Income And Deductions - 2014 Page 4

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Arizona Form 165 Schedule K-1(NR)
business. If you take the allowable subtraction on your
Partnership or S corporation partner:
Arizona income tax return for any net long-term capital gain
The information in Part IV should be used to complete the
from assets acquired after December 31, 2011, you cannot
Worksheet for Net Long-Term Capital Gain Subtraction for
include the amount on line 20, column (d), for net long-term
Assets Acquired After December 31, 2011 that is included in
capital gain from investment in qualified small business in
the instructions of Arizona Form 165 or Arizona Form 120S.
that allowable subtraction. For more information see the
The worksheet will assist the partnership or S corporation in
instructions for Form 140PY or 141AZ.
completing the Net Long-Term Capital Gain Subtraction –
Individual partner:
Information Schedule on Arizona Form 165, Schedule K-1 or
Schedule K-1(NR), for each partner; or Arizona Form 120S,
To determine if you qualify to take a subtraction from income
Schedule K-1 or Schedule K-1(NR), for each shareholder.
on your Arizona personal income tax return, the individual
partner must complete the Worksheet for Net Long-Term
C corporation or exempt organization partner:
Capital Gain Subtraction for Assets Acquired After
A subtraction is not allowed for a C corporation or an exempt
December 31, 2011. The worksheet is included in the
organization. The information in Part IV is informational
instructions for the nonresident income tax return (Arizona
only and is not required to be reported by the C corporation
Form 140NR).
or exempt organization.
Nonresidents use only the amount of Arizona-sourced, net
long-term capital gain (loss) entered on line 19 and line 20,
column (d) to figure the allowable subtraction on the
worksheet that is included with Arizona Form 140NR.
Fiduciary partner:
If the net long-term capital gain (loss) in Part IV is taxed at
the estate or trust level, use the information to complete the
Worksheet for Net Long-Term Capital Gain Subtraction for
Assets Acquired After December 31, 2011, included in the
instructions of Arizona Form 141AZ for the estate or trust.
If the net long-term capital gain (loss) in Part IV is distributed
to the beneficiaries, use the information to complete the
Worksheet for Net Long-Term Capital Gain Subtraction for
Assets Acquired After December 31, 2011, included in the
instructions of Arizona Form 141AZ. The worksheet will
assist the estate or trust in completing the Net Long-Term
Capital Gain Subtraction – Information Schedule on Arizona
Form 141AZ, Schedule K-1 or Schedule K-1(NR), for each
beneficiary.

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