AZ assistance for "gain worksheet"

[Possi]

I am trying to do an AZ gain worksheet, and I have no idea what goes on lines 9 (third column) and 11 (second column.) When I enter what I believe they are looking for, it whacks out the other figures.

Do we have any AZ preparers out there who can help?

[Koss]

AZ Capital Gain

Line 11 involves capital loss carryover. If your client has a long-term capital loss carryover, and it was used to reduce capital gain on the federal return, then you enter the amount of the carryover that was used to reduce long-term gain. This amount would be entered in both column b and column c.

This can be tricky if your client has both long-term and short-term gains, because you need to determine how much of the carryover, if any, was applied to long-term gain on the federal return.

Line 9 pertains only to capital gain distributions reported on Form 1099-DIV. It does not pertain to any qualified dividends.

If your client has capital gain distributions on Form 1099-DIV, you need to find out when the client purchased the mutual fund shares that generated those capital gain distributions, because you need to know whether the distribution is from an asset that was acquired before 01/01/12 or after 12/31/11. You may need to prorate the capital gain distributions, because the distributions may flow from fund shares that were acquired during both time periods.

Form 1099-DIV does not contain enough information to perform the necessary calculations.

Arizona is using a definition of long-term capital gain that is very different from the federal definition.

BMK

[Possi]

good grief

Could they MAKE it any more challenging?

Thank you so much, for the assistance. I couldn't have figured that out... ever...

It's nice that they give retired military a little break. My client retired there, and I found the $2500 subtraction.