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Arizona PAL reporting

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    Arizona PAL reporting

    An Arizona non-resident who has a passive activity loss on Arizona property often doesn't have to file a return based on filing requirement thresholds, but I've never been certain if they need to file in order to have a record of the passive losses so they can take them upon disposition of the property.

    Unlike California, for example, I don't believe there is even a Arizona form to report the disallowed loss, so we have often added the amount as a footnote.

    Anyone know definitively if ongoing reporting is required or can released passive losses be reported only when there is income to offset them or a disposition to release them?
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