Arizona 120S Schedule K-1 - Resident Shareholder's Information Schedule

120S Schedule K-1 - Resident Shareholder's Information Schedule
Arizona Form 120S Schedule K-1
View Instructions
Arizona Form

120S Schedule K-1

Resident and Part-Year Resident
Shareholder’s Information Schedule

2019

For the  calendar year 2019 or  fiscal year beginning M M D D 2 0 1 9 and ending M M D D 2 0 Y Y .
CHECK ONE:

 Original	  Amended

Shareholder’s Identifying Number

S corporation’s Employer Identification Number (EIN)

Shareholder’s Name

S corporation’s Name

Shareholder’s Address – number and street or rural route

S corporation’s Address – number and street or rural route

Shareholder’s City, Town or Post Office

S corporation’s City, Town or Post Office

State ZIP Code

Shareholder’s percentage of stock ownership for the taxable year: 

Part 1

State ZIP Code

%

Net Capital Gain (Loss) From Investment in a Qualified Small Business – Information
Schedule

If the shareholder’s federal Schedule K-1 (Form 1120-S) does not include any net capital gain (loss) from investment in a qualified small
business as determined by the Arizona Commerce Authority, the S corporation is not required to complete Part 1.
Pro Rata Share Items

Distributive Share Amount

1 Net capital gain (loss) from investment in a qualified
small business.......................................................... 1

Part 2

Net Capital Gain (Loss) From the Exchange of Legal Tender – Information Schedule

If the shareholder’s federal Schedule K-1 (Form 1120-S) does not include any net capital gain (loss) from the exchange of legal tender,
the S corporation is not required to complete Part 2.
Pro Rata Share Items

Distributive Share Amount

2 Net capital gain (loss) from the exchange of legal
tender....................................................................... 2

Part 3

Net Long-Term Capital Gain (Loss) Subtraction – Information Schedule

If the shareholder’s federal Schedule K-1 (Form 1120-S) includes net long-term capital gain (loss), complete line 3 through line 5 (if
applicable). If the shareholder’s federal Schedule K-1 (Form 1120-S) does not include any net long-term capital gain (loss), the S
corporation is not required to complete Part 3.
Pro Rata Share Items
From federal Form 1120-S, Schedule K-1

(a)
Distributive Share Amount

3 Net long-term capital gain (loss)............................... 3
ADDITIONAL INFORMATION:
4 Net long-term capital gain (loss) from investment in
a qualified small business (amount already included
in line 3, column (c))................................................. 4
5 Net long-term capital gain (loss) from the exchange
of legal tender (amount already included in line 3,
column (c))................................................................ 5

ADOR 11191 (19)

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(b)
Net long-term capital gain
(loss) included in column (a)
from assets acquired before
January 1, 2012

(c)
Net long-term capital gain
(loss) included in column (a)
from assets acquired after
December 31, 2011

2019 Resident and Part-Year Resident
Shareholder’s Information Schedule
Instructions for Resident and PartYear Resident Shareholders
Part 1: Net Capital Gain (Loss) From
Investment in a Qualified Small Business –
Information Schedule
Arizona allows individuals, estates, and trusts a subtraction
from Arizona gross income for any net capital gain derived
from investment in a qualified small business if:
 The gain is included in:
o The individual’s federal adjusted gross income, or
o The estate or trust’s federal taxable income, and
 The business in which the S corporation invested is
determined to be a qualified small business by the
Arizona Commerce Authority.
A shareholder that is a pass-through entity (estate or trust)
will need this information to:
 Calculate its subtraction, or,
 Complete
Form 141AZ
Schedule
K-1,
or Form141AZ Schedule K-1(NR), for each beneficiary.

Line 1 Line 1 is your share of net capital gain (loss) from
investment in a qualified small business. See the
instructions for Form(s) 140, 140PY, or 141AZ to
determine if you qualify to take this subtraction.

Part 2: Net Capital Gain (Loss) From the
Exchange of Legal Tender – Information Schedule
For taxable years beginning from and after December 31,
2017, Arizona allows the exclusion from gross income the
amount of net capital gain (loss) derived from the exchange
of one kind of legal tender for another kind of legal tender.
(a) “Legal tender” means a medium of exchange,
including specie, that is authorized by the United
States Constitution or Congress for the payment of
debts, public charges, taxes and dues.
(b) “Specie” means coins having precious metal content.

Line 2 Line 2 is your share of the net capital gain (loss) from the
exchange of one kind of legal tender for another kind of
legal tender. See the instructions for Form(s) 140, 140PY,
or 141AZ to determine how you treat this amount.

Part 3: Net Long-Term Capital
Subtraction – Information Schedule

Gain

Arizona allows individuals, estates, and trusts a subtraction
from Arizona gross income for a percentage of any net
long-term capital gain if:
 The gain arises from assets acquired after
December 31, 2011, and,
 The gain is included in:
o The individual’s federal adjusted gross income, or
o The estate or trust’s federal taxable income.
In addition:
 Only include net long-term gains if you can verify the
asset was acquired after December 31, 2011.

Arizona Form
120S Schedule K-1 


If you cannot verify the asset was acquired after
December 31, 2011, treat it as a capital gain asset
acquired before January 1, 2012.
 An asset acquired by gift or inheritance is considered
acquired on the date it was acquired by the gift-giver or
the deceased.
A shareholder that is a pass-through entity (estate or trust)
will need this information to:
 Calculate its subtraction, or,
 Complete Form 141AZ, Schedule K-1, or
Schedule K-1(NR) for each beneficiary.

Line 3 Line 3, column (c), is your share of net long-term capital
gain (loss) from assets acquired after December 31, 2011.

Line 4 Line 4, column (c) is your share of the S corporation’s net
long-term capital gain from investment in a qualified small
business that is included in the amount on line 3, column
(c). The amount on this line cannot be included in your
subtraction for any net long-term capital gain from assets
acquired after December 31, 2011.
For more information, see the instructions for Form(s) 140,
140PY, or 141AZ.

Line 5 Line 5, column (c) is your share of the S corporation’s net
long-term capital gain (loss) from the exchange of legal
tender that is included on line 3, column (c). The amount
on this line cannot be included in your subtraction for any
net long-term capital gain from assets acquired after
December 31, 2011.

Worksheet for Long-Term Capital Gain Subtraction
for Assets Acquired After December 31, 2011
(Worksheet)
To determine if you qualify for a net long-term capital gain
subtraction on your Arizona income tax return:
 Full-year resident shareholders, use the amounts on
line 3, line 4, column (c), and line 5, column (c) to
figure the allowable subtraction on the Worksheet
included in the instructions for Form 140.
 Part-year resident shareholders, use the amounts on
line 3 line 4, column (c), and line 5, column (c) that are
included in your Arizona gross income to figure the
allowable subtraction on the Worksheet included in the
instructions for Form 140PY.
 Resident estate or trust shareholders, use the amounts
on line 3, line 4, column (c), and line 5, column (c) to
complete the Worksheet included in the instructions
for Form 141AZ. If the resident estate or trust
distributed the gain (loss) to the beneficiaries, the
Worksheet will assist the estate or trust in completing
the Net Long-Term Capital Gain Subtraction –
Information Schedule on Form 141AZ, Schedule K-1,
or Schedule K-1(NR) for each beneficiary.