I live in Utah and have a 1040 long term capital loss carryover, none of which is from Arizona income sources. I have an Arizona K-1(NR) from an Arizona investment partnership with a 1231 gain of about 4,000 (line 11) and a loss of -830 from rental income (line 2). There is also a business expense deduction of 640 (line 16) (2% floor business deduction -- I have enough business expense deductions on my 1040 to get above the 2% floor).
My long term capital loss carryover is about $19,000, all from non-Arizona sources. Can I use it to net out the Arizona capital gain income? If so I have no Arizona income to report. If so, do I still need to file the Arizona 140NR? Netting this out will result in a net loss from this investment. I pay no 1040 income tax on this investment.
Help or suggestions greatly appreciated!
