My rental in Arizona was rented for 17 days (the last 17 days in December) and reported a loss (with or without depreciation factored in). This is the first time I put my property on rent and I have not filed AZ nonresident tax before as the property was not rented.
According to the Arizona 140NR non-resident booklet, marrying filing jointly must file if gross income exceeds $27,700 (see p. 7). This is prorated for by the “percentage of your federal adjusted gross income that represents your Arizona gross income (income ratio shown on line 27 of Form 140NR).”
To calculate this ratio, according to the booklet (p. 9), “If Arizona gross income is equal to or less than zero (negative), and the federal adjusted gross income is more than zero, enter 0.000 on line 27.”. Hence, I figured that in my case, the ratio is 0, hence, I must file only if my income exceeds 0.
Since my Arizona income is negative, then I do not need to file. Please confirm. TT has the AZ form filled with zeros for AZ income. Yet, it does not give any indication if I must file or not. I find it awkward and counter-intuitive to file a form with zeros for AZ income.
Any input is much appreciated. Thanks.
The 2023 Arizona 140NR form and instructions can be found at:
https://azdor.gov/sites/default/files/2023-12/FORMS_INDIVIDUAL_2023_140NRBooklet.pdf
