Thank you! Indeed, the gross proceeds (rents) are significantly under the $27,500 threshold.
What was confusing was the reference to the ratio of AZ income to Federal income to be used to adjust the filing threshold. The reference to income was unclear, it appeared to refer to Rent - (Expenses+Depreciation). Turbotax used this formula to fill in the federal income value for rental properties on the AZ form, yet asked me to fill in AZ rental income (which I have it as a loss (negative) on my federal schedule E form).
The AZ instructions appear to refer to income or gross income as net proceeds, i.e., Rent - (Expenses+Depreciation). This was apparent by the reference to "If Arizona gross income is equal to or less than zero (negative)..." (p.9). If it was referring to only rents (proceeds), how would it be possible to be negative? I am correct with this interpretation? I believe it may not impact the situation this year, but may be at play if the figures change in the future.
Thanks again for your input.
