The following types of income may need to be added to your Arizona state return.
If the amount on line 3 of your Form 165, Schedule K-1 is a positive number, list this amount as an addition to income on your Arizona state return.
Total Federal Depreciation
Enter the amount of depreciation that you deducted on your federal return. If there is an entry made here, be sure to add this as a subtraction as well. See instructions for this line to figure out the amount you can subtract.
Net Capital (Loss) Derived from exchange of legal tender
Beginning December 31, 2017 the amount of any net capital (loss) is to be included in
Arizona gross income for the taxable year that is derived from the exchange of one kind of legal tender for another kind of legal tender.
Non-Arizona Municipal Interest
Report the amount of interest income you received from non-Arizona municipal bonds that you did not include as income on your federal return. You may exclude any expenses incurred to purchase or carry the obligation. Reduce the interest income by the amount of those expenses that you could not deduct on your federal return.
- State Section
- Edit Arizona return
- Additions to Income
For a detailed list of Arizona’s Other Additions to income, please click here.