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jraybe1

Question

Should I file a AZ state income tax if I live in CA, own a rental property in AZ, collected 13,600 in rent, but my federal shows a -11,000 for rental and royalties?

Forum|Forum|6 years ago
June 6, 2019
4 replies
0 views

No text available

KatrinaB48

You must file a nonresident tax return in the state of Arizona if you have earned any Arizona source income. Rental income does count as an Arizona source income. Please view page 7 of the Arizona nonresident booklet below.

https://www.azdor.gov/Portals/0/ADOR-forms/TY2016/10100/140NRBooklet.pdf

Please view the Turbo Tax FAQ below for instructions on how to file a nonresident tax return.

https://ttlc.intuit.com/replies/3302052

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RealityG

I am in a similar situation and this is the answer I received from the Arizona Dept of Revenue:

Arizona nonresidents earning income from Arizona sources and who meet the filing threshold are required to file a nonresident tax return (AZ Form 140NR). Rental income from a property located in Arizona is considered income from Arizona sources. If you are required to file a nonresident return, report the rental income on Form 140NR, line 21.

Note: Arizona does not allow individuals a adjustment to reduce current year income with net a operating loss carry forward utilized on the federal return.

To determine if you meet the filing threshold for a nonresident see Form 140NR instructions, page 1) for the table listing the filing thresholds for each type of filing status.

https://azdor.gov/forms/individual/arizona-nonresident-personal-income-tax-booklet

It looks like the income threshold is $15,000, so it looks like you do not have to file if you did not collect rents beyond this amount. Hope this helps!

IG3

I have a similar situation. I just own a a rental property in AZ. According to TurboTax I should pay some $200 tax in AZ, but my only income in AZ is from that rental property and is below $15,000 threshold as specified at https://azdor.gov/forms/individual/arizona-nonresident-personal-income-tax-booklet

I actually bought already TurboTax AZ TAX YEAR 2019 but it seems that the software was suggesting to do the wrong thing as is not checking for the threshold.

Can anyone at IntuIt confirm that the software is not checking for that and might be wrong if total AZ gross income is below $15,000? Also, can I get refunded for the TurboTax AZ TAX YEAR 2019 add in purchase?

Thank you!

Dave61948

Question....

Have a rental property in AZ, but live in Texas

Rental income is less than the $15000 level

Do I have to file either a 140NR or a 140NR-SBI

Not sure I understand why they have two forms

Also, are you paying the taxes on the rent amount and not the profit after expenses?

Thanks

MayaD

Form Form 140 SBI is for Small Business Income Tax Return

Form 140NR 140NR s for Nonresident Personal Income Tax Return.

As an AZ nonresident, you must report income derived from Arizona sources and file form 140NR.

How do I file a nonresident state return?

You pay taxes on the profit after deducting your expenses from the total rent received.

Where do I enter income and expenses from a rental property?

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Dave61948

Can you clarify for me. Condo in AZ unrented for maint last year and rental income only about $14,000. As I read the below, looks like if gross income under $15000, we would not have to file a return this year.

Is that correct?

Thanks

In the state of Arizona, individuals must file a tax return if they are:

single, married filing separately or head of household and the Arizona Adjusted Gross Income (AAGI) is at least $5,500, or the Gross Income (GI) is at least $15,000;
married and filing jointly and the AAGI is at least $11,000, or the GI is at least $15,000.

Non-Residents

In the case of nonresidents, A.R.S. § 43-1091 provides that Arizona gross income includes only that portion of federal adjusted gross income which represents income from sources within this state. Income of a nonresident from the wages or salary received by the nonresident employee who is in this state on a temporary basis for the purpose of performing disaster recovery from a declared disaster during a disaster period as defined in section 42-1130 is not considered income from sources within this state.

For Arizona income tax purposes, A.R.S. § 43-104 defines the term “nonresident” to mean every individual other than a resident.

Arizon section 43-1411. Partnership, individual partnership liability

An individual carrying on a business in partnership shall be liable for income tax only in his individual capacity

maglib

Employee

@jraybe1 YOU WILL NOT HAVE TO FILE A NR return as your below the filing threshold.

Arizona does not allow individuals a adjustment to reduce current year income with net a operating loss carry forward utilized on the federal return.

To determine if you meet the filing threshold for a nonresident see Form 140NR instructions, page 1) for the table listing the filing thresholds for each type of filing status.

https://azdor.gov/forms/individual/arizona-nonresident-personal-income-tax-booklet

The filing threshold (GROSS RENT) used to determine if a taxpayer must
file an Arizona individual income tax return was adjusted
for inflation.
The filing threshold is based on a taxpayer’s filing status
and federal gross income excluding certain income that
Arizona does not tax. A taxpayer must file if they are:
• Single and gross income is more than $12,950;
• Married filing joint and gross income is more than
$25,900;
• Married filing separate and gross income is more than
$12,950; and
• Head of Household and gross income is more than
$19,400.
For more information and income that is excluded, see the
table, Arizona Filing Requirements, provided on page 1 of
the instructions for the income tax form you are filing

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